Settlement Opportunity

[FTTM]

I think your % is high. Are you including employer's and employee's NIC together? Employees is a mere 12% up to whatever the upper limit is and 2% thereafter. As an employee we are only responsible for the employee contribution. I do not think that HMRC can pursue us for employer's NIC.

Agree your rate but i was referring to a % of the total liability and in fact I think I under estimated it. For example 50K salary under paye as of today would result in deductions of £9627 in tax and £4231 in personal NI contributions. Therefore adding NI on to your liability in this instance results in an increase of over 44%. vs an income tax only liability.

Page 2 of the settlement opportunity letter states " We will apply a charge to income tax only on the sums received as loans. In future litigation other approaches could apply higher charges.... and there might be a personal NIC liability. In contrast no further NIC will be sought from you personally under the settlement opportunity."

Under what powers they will be able to charge NIC I do not know. Would be good if someone with more knowledge could advise how likely this could be as I think the possibility of this happening will make settlement more attractive for a lot of people with mid range liabilities.

[Rob79]

Agree your rate but i was referring to a % of the total liability and in fact I think I under estimated it. For example 50K salary under paye as of today would result in deductions of £9627 in tax and £4231 in personal NI contributions. Therefore adding NI on to your liability in this instance results in an increase of over 44%. vs an income tax only liability.

Page 2 of the settlement opportunity letter states " We will apply a charge to income tax only on the sums received as loans. In future litigation other approaches could apply higher charges.... and there might be a personal NIC liability. In contrast no further NIC will be sought from you personally under the settlement opportunity."

Under what powers they will be able to charge NIC I do not know. Would be good if someone with more knowledge could advise how likely this could be as I think the possibility of this happening will make settlement more attractive for a lot of people with mid range liabilities.

There are situations in which recipients of income from an offshore source can be liable to both employee and employer NIC. This is because the recipient of income is also deemed to be an "employer" for the purposes of PAYE rules.

[DMC777]

So got my letter saturday morning, finally got through to someone on the helpline to be advised I was being chased for 08/09 which I had already paid the settlement figure (and the lady I spoke to said the system showed I had paid) ?

Im confused, did anyone get asked to settle for any other years previous to 08/09 as most of the threads Ive looked at only seem to mention this year? Im assuming that HRMC do not seem to know what loans have been paid and are basically asking us to fill in the blanks for them??

[Bunnyfuture]

Too much information ?

So got my letter saturday morning, finally got through to someone on the helpline to be advised I was being chased for 08/09 which I had already paid the settlement figure (and the lady I spoke to said the system showed I had paid) ?

Im confused, did anyone get asked to settle for any other years previous to 08/09 as most of the threads Ive looked at only seem to mention this year? Im assuming that HRMC do not seem to know what loans have been paid and are basically asking us to fill in the blanks for them??

So can I ask what other information did you provide them with then ?
Do you have other outstanding payments due.
I have a bill for 08/09 only at this point but I'm scared to call as I have no idea what other info they would want.

[DMC777]

So can I ask what other information did you provide them with then ?
Do you have other outstanding payments due.
I have a bill for 08/09 only at this point but I'm scared to call as I have no idea what other info they would want.

Ive never provided them with any information. I briefly used TRM in 2008, was presented last year with a settlement bill which was small so I thought pay it and get it out the way. The woman I spoke to at HMRC confirmed that my account for 2008/09 was showing as paid so she didnt know why I had got the letter hence why Ive requested someone call me.

[Bunnyfuture]

Ive never provided them with any information. I briefly used TRM in 2008, was presented last year with a settlement bill which was small so I thought pay it and get it out the way. The woman I spoke to at HMRC confirmed that my account for 2008/09 was showing as paid so she didnt know why I had got the letter hence why Ive requested someone call me.

Thanks! That's useful

[bhavvy]

I also rang the 03000 534226 Number

So got my letter saturday morning, finally got through to someone on the helpline to be advised I was being chased for 08/09 which I had already paid the settlement figure (and the lady I spoke to said the system showed I had paid) ?

Im confused, did anyone get asked to settle for any other years previous to 08/09 as most of the threads Ive looked at only seem to mention this year? Im assuming that HRMC do not seem to know what loans have been paid and are basically asking us to fill in the blanks for them??

I also rang the number on the Settlement Opportunity letter. To my surprise she was actually very helpful. She said although they had looked into my 'employers' from 2004, that they were only interested in 'tax owed' for the years 2007 - 2008 and 2008 - 2009 tax years (I presume the 6 year cut-off). I asked how much I owed. She gave me a figure for those years. I informed her that I had declared everything for those years in SA's and P11D's. Then to my surprise, she said 'yes you did, you don't owe us anything'. I obviously asked for this in writing and she said she would send me the letter. I hope she wasn't lying ! Nice of them to send me a letter after all these years, threatening me with lengthy and costly tribunals when I don't even owe them anything.

I would ring them but obviously don't divulge any information except your NI number.

[costo]

I also rang the number on the Settlement Opportunity letter. To my surprise she was actually very helpful. She said although they had looked into my 'employers' from 2004, that they were only interested in 'tax owed' for the years 2007 - 2008 and 2008 - 2009 tax years (I presume the 6 year cut-off). I asked how much I owed. She gave me a figure for those years. I informed her that I had declared everything for those years in SA's and P11D's. Then to my surprise, she said 'yes you did, you don't owe us anything'. I obviously asked for this in writing and she said she would send me the letter. I hope she wasn't lying ! Nice of them to send me a letter after all these years, threatening me with lengthy and costly tribunals when I don't even owe them anything.

I would ring them but obviously don't divulge any information except your NI number.

Did you have any open enquiries for those years?

[dezze]

I also rang the number on the Settlement Opportunity letter. To my surprise she was actually very helpful. She said although they had looked into my 'employers' from 2004, that they were only interested in 'tax owed' for the years 2007 - 2008 and 2008 - 2009 tax years (I presume the 6 year cut-off). I asked how much I owed. She gave me a figure for those years. I informed her that I had declared everything for those years in SA's and P11D's. Then to my surprise, she said 'yes you did, you don't owe us anything'. I obviously asked for this in writing and she said she would send me the letter. I hope she wasn't lying ! Nice of them to send me a letter after all these years, threatening me with lengthy and costly tribunals when I don't even owe them anything.

I would ring them but obviously don't divulge any information except your NI number.

I'm confused - did you have open enquiries for those years where you used a Loan scheme? If you have, then I'm very surprised and it may be they didn't understand??? Did you get her name because I'm going to call her!

[LordF]

All years for which you have had an HMRC letter

The Settlement Opportunity is for all the years that you have had an HMRC letter for. I called them and they had it going back to the first year I was with a Tax Scheme (2005/06).