What is the 2019 Loan Charge?

[EBTContractor]

No one will contact you. Supposedly, you'll have to declare loans on your tax return.

And what if you have long since moved overseas and don't have to complete a tax return?

And what if you still live in the UK, complete the return and don't declare anything, despite HMRC knowing about some loans?

Ergo HMRC needs to tell people what they know and what they expect to see on the tax return.

[Smurfburger]

What is the objective of this charge, I mean the official objective? They are not content with pushing through some facicst legislation to tax us in a "guilty till proven innocent" fashion but also want to impose some punitive charge for being involved in a scheme in the first place? Seriously when will this end?

From conversations I have had with HMRC, the loan charge will not apply if you either repay the loans or settle the tax on them before 5th April 2019. They went on to say that, even if you don't have the funds to pay in full, they will look at doing an interest free payment plan over up to four years and are not looking at bankrupting/taking your house if you choose to settle. Interest will only be calculated on any open years (years where you have an appealed assessment notice). Once you agree to the settlement figure no further interest will be added. I have been given the same message from two HMRC representatives. Also, there will be no NI included if you choose to settle.

[demby]

From conversations I have had with HMRC, the loan charge will not apply if you either repay the loans or settle the tax on them before 5th April 2019. They went on to say that, even if you don't have the funds to pay in full, they will look at doing an interest free payment plan over up to four years and are not looking at bankrupting/taking your house if you choose to settle. Interest will only be calculated on any open years (years where you have an appealed assessment notice). Once you agree to the settlement figure no further interest will be added. I have been given the same message from two HMRC representatives. Also, there will be no NI included if you choose to settle.

How f***king generous of them. So £100,000 over 4 years - 48 payments of £2000 - can't see that being any trouble at all

[EBTContractor]

Also, there will be no NI included if you choose to settle.

But plus NI if you choose to wait until 2019?

And if you settle before 2019 is it no NI but plus interest (if there was an open enquiry/discovery assessment)?

[BrilloPad]

From conversations I have had with HMRC, the loan charge will not apply if you either repay the loans or settle the tax on them before 5th April 2019. They went on to say that, even if you don't have the funds to pay in full, they will look at doing an interest free payment plan over up to four years and are not looking at bankrupting/taking your house if you choose to settle. Interest will only be calculated on any open years (years where you have an appealed assessment notice). Once you agree to the settlement figure no further interest will be added. I have been given the same message from two HMRC representatives. Also, there will be no NI included if you choose to settle.

Has that message come in writing?

I have seen HMRC promise all sorts of things over the phone then "resile"...

[DotasScandal]

Has that message come in writing?
I have seen HMRC promise all sorts of things over the phone then "resile"...

This, times 1000.
If you believe anything these gangsters tell you, it's very much at your own risk.
Don't say you were not warned.

[webberg]

My understanding at the moment is as follows. (And is subject to an ongoing discussion with HMRC).

Loans will be charged to the tax in 2019 unless:

1. They have been repaid in cash and the money has not been returned to you.

2. They were included in a CLSO (not an informal settlement, but the CLSO extra statutory agreement)

3. A loan release after 5/4/19 may attract a further charge - although I've not managed to get HMRC to explain how.

[demby]

My understanding at the moment is as follows. (And is subject to an ongoing discussion with HMRC).

Loans will be charged to the tax in 2019 unless:

1. They have been repaid in cash and the money has not been returned to you.

2. They were included in a CLSO (not an informal settlement, but the CLSO extra statutory agreement)

3. A loan release after 5/4/19 may attract a further charge - although I've not managed to get HMRC to explain how.

What sort of proof of loan being repaid would they be looking for ?

[webberg]

What sort of proof of loan being repaid would they be looking for ?

I have no idea.

I suspect proof that the funds were available to the borrower; had moved to the lender; were not being used to support other borrowings by the original borrower.

Otherwise, how is proof otherwise obtained - a letter from the lender?

Do you even know who the lender is?

[bhand5]

Write to your local MP

i've written to my local MP this evening in the hope that he can speak against this new "retrospective" legislation being made Law. it might be worth others doing the same?

Sir Nicholas,

I've not written to my local MP before so i ask that you please excuse any lack of etiquette i might display in the following mail.

I have been working as an IT contractor for nearly 15 Years now within the financial services sector. In the beginning, i started out with a limited company but after a few years was advised by my accountant to take part in what is now deemed as a tax avoidance scheme.
At the time, i thought i was being clever by taking advise from my accountant who was advising me about these efficient tax planning methods but now i have come to learn that this was a huge mistake! With the new Finance bill that is due to be passed this summer (https://home.kpmg.com/uk/en/home/ins...ion-legis.html) i find my self in a situation where i'm liable for something like £180K come April 2019!
This will most likely cause me to lose my house through bankruptcy and prevent me from ever getting a job within the financial sector again.

I think that it's extremely unfair that new legislation can be passed that can retrospectively force people (some 40,000 affected i have read) to pay tax, penalty charges and interest on something that was considered a legal there before.

I understand that there is still a glimmer of hope to prevent this legislation from being passed by doing what i'm doing now (hoping that my local MP can lobby against this ludicrous change in law!).

I can see now with hindsight that i was silly to take part in these schemes but i'm apparently not alone (some 40k). In my defense, i was advised to do this by my accountant at the time (who i try not to blame as no one could have had the foresight that a new law would be passed that had retrospective consequences). However, i am aware of the PPI saga that's still ongoing with the banks and cant help but feel that this is a very similar situation but has no chance (with 40K people) getting the same kind of traction!

I am asking you to stand up for me and all the others that have been caught up in this debacle and put a case forward in the commons to put a stop to this retrospective law being passed. I absolutely agree that laws should be put in place to prevent schemes like this in the future but not to change the rules for people that thought they were doing things within the law at the time and retrospectively penalize.

I look forward to hearing back from you on this and to learn whether you will be standing against this new finance legislation that is due to be passed this summer.