Originally posted by webberg
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
BIG GROUP
Collapse
This topic is closed.
X
X
Collapse
Topic is closed
-
-
Originally posted by starstruck View PostMy point is, if someone choses to follow the CLSO 2 route because it is the cheapest and quickest of a band bunch of choices then I think it is reasonable to assume that all concerned parties are in agreement that the loans existed and that nobody is going to start claiming they don't exist or start chasing money trails that happened 15 years ago. I'm talking about CLSO 2 here and I'm trying to understand the worst case scenario; I know it all except IHT. I've told you the scheme in question (Horizon). If someone wanted to argue the loans weren't real etc.. then they're not likely to be going down the CLSO 2 route.
For me, the settlement process, CLSO 2 or otherwise, has far too many uncertain aspects and is a long way from a final position and a long way from stopping HMRC asking you for more money in the future.
You should also remember that it deals only with the tax issues.
The loan and trust remain in place. Unwinding them may bring more tax costs as well as fees.
I'm familiar with Horizon and observe that the CLSO 2 terms clearly do not have this in mind.
As I said, it's your choice and there are more things to consider than just the tax but if you're going to use this, understand it. If you don't understand it, get some advice.Best Forum Adviser & Forum Personality of the Year 2018.
(No, me neither).Comment
-
Originally posted by webberg View PostI suggest you get some advice.
For me, the settlement process, CLSO 2 or otherwise, has far too many uncertain aspects and is a long way from a final position and a long way from stopping HMRC asking you for more money in the future.
You should also remember that it deals only with the tax issues.
The loan and trust remain in place. Unwinding them may bring more tax costs as well as fees.
I'm familiar with Horizon and observe that the CLSO 2 terms clearly do not have this in mind.
As I said, it's your choice and there are more things to consider than just the tax but if you're going to use this, understand it. If you don't understand it, get some advice.
I agree with what you say. The uncertainty and lack of finality are of concern with the CLSO2.
I understand you can't divulge much yet but can you perhaps answer this: the solution your team has formulated and will (I guess) be approaching HMRC with - does that aim to achieve final closure for the individuals? And why would HMRC care to entertain any offer unless it meets their CLSO2, seeing as they will have the Loan Charge as a catch-all?Comment
-
Originally posted by ChimpMaster View PostWebberg
I agree with what you say. The uncertainty and lack of finality are of concern with the CLSO2.
I understand you can't divulge much yet but can you perhaps answer this: the solution your team has formulated and will (I guess) be approaching HMRC with - does that aim to achieve final closure for the individuals? And why would HMRC care to entertain any offer unless it meets their CLSO2, seeing as they will have the Loan Charge as a catch-all?
HMRC will almost certainly not wish to entertain anything other than their dogmatic insistence on their analysis which is entirely untenable in the light of Rangers.
The issue of CLSO 2 with no mention of that decision is all the evidence you need that HMRC are in denial.Best Forum Adviser & Forum Personality of the Year 2018.
(No, me neither).Comment
-
Originally posted by webberg View PostI suggest you get some advice.
For me, the settlement process, CLSO 2 or otherwise, has far too many uncertain aspects and is a long way from a final position and a long way from stopping HMRC asking you for more money in the future.
You should also remember that it deals only with the tax issues.
The loan and trust remain in place. Unwinding them may bring more tax costs as well as fees.
I'm familiar with Horizon and observe that the CLSO 2 terms clearly do not have this in mind.
As I said, it's your choice and there are more things to consider than just the tax but if you're going to use this, understand it. If you don't understand it, get some advice.Comment
-
Originally posted by starstruck View PostYour comments concern me greatly as I have sought professional advice and I was told that despite people saying otherwise the closure opportunities are a legally binding contract and that they do provide finality in the matter. The advice caveatted that statement with IHT being unclear hence my digging for more information here. So who do I believe?
A contract settlement is legally binding. It closes the year (for the bits that you have settled). Obviously, if you've not disclosed something, misled HMRC etc then all bets are off. They can make discovery assessments, etc. Also, it only settles things for tax purposes. It does not deal with, for example, any loan that is still outstanding. It also does not deal with anything that may happen in the future.
I do not work with contractors. But I have seen very favourable settlements in respect of loans made many years ago (i.e. favourable in the context of today's much tougher settlement terms) and these are binding. There is no way a court would allow these ones to be changed now. As an example, have a look at this UTT decision (which is to do with VAT but similar principles apply): https://www.rpc.co.uk/perspectives/t...ment-agreement
No offence to webberg, but he has a business to run and the more uncertainty that he can generate, the more fees he can get.Comment
-
Originally posted by Iliketax View PostNo offence to webberg, but he has a business to run and the more uncertainty that he can generate, the more fees he can get.
And therein lies the problem.Comment
-
Originally posted by Iliketax View PostA contract settlement is legally binding. It closes the year (for the bits that you have settled). Obviously, if you've not disclosed something, misled HMRC etc then all bets are off. They can make discovery assessments, etc. Also, it only settles things for tax purposes. It does not deal with, for example, any loan that is still outstanding. It also does not deal with anything that may happen in the future.Comment
-
Originally posted by vern19 View PostWhat about where HMRC agreed settlement with full knowledge of outstanding loans in previous years that were closedComment
-
Originally posted by Iliketax View PostWhat, specifically, did the settlement say about those closed years? What tax did you pay in respect of those closed years?Comment
Topic is closed
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment