What is the 2019 Loan Charge?

[frodo]

The assumption is that even for those who settled, the charge will apply for closed years.

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?

[JaredM]

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?

It will end when everyone is on PAYE or the dole. Anything in between is considered tax dodging.

[frodo]

It will end when everyone is on PAYE or the dole. Anything in between is considered tax dodging.

Is there any indication on what this charge will be?

[DotasScandal]

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?

The "official" objective is to "put beyond doubt that such loans are considered taxable"
The "unofficial" objective is to cover up the whole bloody mess and HMRC's culpability in the whole thing over the past 16 years. This will be done by sacrificing a convenient scapegoat group.

The money is but a nice extra.

The Osborne Ultimatum: are we all being played?

[frodo]

The "official" objective is to "put beyond doubt that such loans are considered taxable"
The "unofficial" objective is to cover up the whole bloody mess and HMRC's culpability in the whole thing over the past 16 years. This will be done by sacrificing a convenient scapegoat group.

The money is but a nice extra.

The Osborne Ultimatum: are we all being played?

A snippet from https://www.gov.uk/government/public...echnical-note:


The government is also committed to ensuring that those who have used these schemes in the past aren’t allowed to get away with it.
To meet this objective, the government will introduce legislation to put beyond doubt that all loans or debts from a disguised remuneration scheme will be taxed as
earnings if they haven’t already been fully taxed or repaid on or before 5 April 2019.

So no charge if you've settled/paid APN, right?

[neil99]

So no charge if you've settled/paid APN, right?

HMRC officials think every year EBT used will be under consideration irrespective including closed years if you've settled already. Obviously APN is a payment on account towards the final bill which will include interest.

SO if for example 200k loans over 3 years from 2005-8 expect a tax bill north of 90k.

Great isn't it :-(

You could always join Big Group in the anticipation that we'll be able to negotiate a better deal with the tax man. But the bottom line is terrifying and will bankrupt thousands.

[webberg]

So no charge if you've settled/paid APN, right?

Be nice to think so, but from conversations we had with HMRC (not the top policy makers but front line grunts) they consider that a loan FROM ANY YEAR which has not had tax applied to it, is liable to the April 2019 charge.

That is regardless of whether an enquiry has been opened correctly, you have taken the CLSO, you are no longer even in the country.

Madness.

[foobar]

Be nice to think so, but from conversations we had with HMRC (not the top policy makers but front line grunts) they consider that a loan FROM ANY YEAR which has not had tax applied to it, is liable to the April 2019 charge.

That is regardless of whether an enquiry has been opened correctly, you have taken the CLSO, you are no longer even in the country.

Madness.

Politicians have done a masterful job of exploiting the easily misguided reflex conditioning of the unthinking masses in this country. "Paying your fair share" rings in the ears of the howling mob and vacuous politicians, interested only in keeping office, howl with them. "APN" and "April 2019 tax charge" are deceptive terms to disguise what is a brutal cash grab of those who arranged their affairs lawfully.

[ireland2013]

Be nice to think so, but from conversations we had with HMRC (not the top policy makers but front line grunts) they consider that a loan FROM ANY YEAR which has not had tax applied to it, is liable to the April 2019 charge.

That is regardless of whether an enquiry has been opened correctly, you have taken the CLSO, you are no longer even in the country.

Madness.

I took up the CLSO as it was a small amount and paid tax and interest and have a letter stating that I have settled. - I have no other years in question - Are you stating HMRC will apply another charge to me in 2019?

[DotasScandal]

I took up the CLSO as it was a small amount and paid tax and interest and have a letter stating that I have settled. - I have no other years in question - Are you stating HMRC will apply another charge to me in 2019?

If you had other "scheme" years not included in the CLSO for whatever reason, yes. Otherwise, no.