BIG GROUP

[EBTContractor]

Pre 2011 schemes = tax on loans received plus interest.

Post 2011 schemes = tax on loans, plus promoter fees (so tax on 100% of all invoices regardless of how much you actually received), plus class 4 NI, plus interest.

Also IHT is also a possibility depending on the structure of the schemes you were in, plus other parameters not totally clear. Just how HMRC like it.

Is this stated somewhere in writing?

[difficulttimes]

100% correct as it stands....let's hope it changes

Is this stated somewhere in writing?

This is correct and if you have a closed year then there is no interest included.

[Silverskin]

Pre 2011 schemes = tax on loans received plus interest.

Post 2011 schemes = tax on loans, plus promoter fees (so tax on 100% of all invoices regardless of how much you actually received), plus class 4 NI, plus interest.

Also IHT is also a possibility depending on the structure of the schemes you were in, plus other parameters not totally clear. Just how HMRC like it.

Ok and the alternatives are:

1) Payback the loans

2) Declare the full consolidated loan amount in your 2018-19 tax return and incur PAYE and NIC but no interest, fees etc

Is that correct?

[Silverskin]

This is correct and if you have a closed year then there is no interest included.

Ok so you're saying that regardless of the year (pre or post 2011), interest will only be charged on open years?

[regron]

Is this stated somewhere in writing?

Yes, from HMRC themselves when I asked for settlement.

[difficulttimes]

Ok so you're saying that regardless of the year (pre or post 2011), interest will only be charged on open years?

You are confusing the LC and settling.. there is no interest with declaring loans in your tax return for 18/19. You will just get hit with the IT and NICs due on top of what you declared for that tax year.

For settling, you will pay interest on all years with the exception of closed years. Plus the additional what was written above.

[Silverskin]

You are confusing the LC and settling.. there is no interest with declaring loans in your tax return for 18/19. You will just get hit with the IT and NICs due on top of what you declared for that tax year.

For settling, you will pay interest on all years with the exception of closed years. Plus the additional what was written above.

Ok thanks. When you say with the exception of closed years, do you mean those tax years where you received a loan but that tax year is NOT "open" with respect to the loanee. I.e) HMRC have not sent you an enquiry or discovery assessment?

Just to be absolutely clear, let's say you only received a single £50k loan in the tax year 1999-2000 but there was never an enquiry or discovery assessment administered by HMRC. If you choose to settle that loan today, then you would pay PAYE tax but no NICs or interest. Correct?

[sallyann]

Another quick question if I may.

What exactly is meant by 'promoters fees'?

Is this something that all schemes had or only some of them and you'd know if this applied to you?

I was not aware of paying any, but then I was not made aware of a lot of things...but without knowing this how can I work out a likely post 2011 settlement figure?

[WalterWhite]

Another quick question if I may.

What exactly is meant by 'promoters fees'?

Is this something that all schemes had or only some of them and you'd know if this applied to you?

I was not aware of paying any, but then I was not made aware of a lot of things...but without knowing this how can I work out a likely post 2011 settlement figure?

The majority of the amount you didn't receive will likely have been the promoter fee

[sallyann]

The majority of the amount you didn't receive will likely have been the promoter fee

So to be clear, we're being taxed on amounts we've PAID rather then received?