What is the 2019 Loan Charge?

[webberg]

What about schemes that weren’t loan orientated? E.g receiving dividend via a trust.

I assume you don’t need to mention this in your tax return as they are simply not Loans...

I think that's a bit naïve.

I'm sure HMRC will try to argue that the "dividends" are redirected earnings.

Read a case called PA Holdings first and then some of the threads here and if yo remain confused go and get some advice.

[ConfusedEasily]

s even at the special commissioners. The Inland Revenue did not have any public policy or "track" in 2000 on loan schemes.

The December 2010 changes were (almost) all about prospective loan schemes. That was very well publicised at the time. So there is nothing hidden when DR came in. The March 2016 changes were all about old loans. Again, that was well publicised. So I'm confused about what you mean by "without being announced".

Publicised to who? Despite what you all think most people who used these schemes don't trawl forums and, in some cases, have no idea about the 2019 loan charge. Some STILL use schemes. I don't have 'Spotlight' on my favourites.

I have had no correspondence about the 2019 Loan Charge or, for that matter, the scheme which I used over a decade ago.
I discovered I would be impacted by accident and have now given up trying to get HMRC to supply the 'voluntary contribution' value that would allow me to settle.

Please - it's total bollocks to assume that the level of publicity relating to any of this is sufficient. It isn't. That's why schemes still thrive.

[BrilloPad]

Publicised to who? Despite what you all think most people who used these schemes don't trawl forums and, in some cases, have no idea about the 2019 loan charge. Some STILL use schemes. I don't have 'Spotlight' on my favourites.

I have had no correspondence about the 2019 Loan Charge or, for that matter, the scheme which I used over a decade ago.
I discovered I would be impacted by accident and have now given up trying to get HMRC to supply the 'voluntary contribution' value that would allow me to settle.

Please - it's total bollocks to assume that the level of publicity relating to any of this is sufficient. It isn't. That's why schemes still thrive.

Your are correct morally.

However legally ignorance is no defense.

[ConfusedEasily]

Your are correct morally.

However legally ignorance is no defense.

I know that. The sad thing is, I do know - many don't.
I think it's because this organic realisation suits HMRC who probably couldn't deal with 40K people saying what the **** all at once.

We're actively supporting two colleagues who are in dire straits over this mess. Both facing bankruptcy and both would lose their jobs as soon as that happens. We're wondering how many others are going to be caught and if there is a way we can keep them in employment post-bankruptcy.

DMB told one of them they couldn't afford a repayment plan so they won't get one. They're in gainful employment and could pay it off over five years (they'd need to sell their house as well). DMB say NO.
Cruel and ******* insane.

I can afford my disaster, many can't.

[Stevep42]

The number of bankruptcies has been hugely underestimated and most of those won’t be able to work again - so instead of putting money into the U.K. evonomy, they’ll be takers by Being forced to live off benefits.

What a stupid government we have

[Safe]

Loan charge VS Settlement

Daft question:

If I don't settle my case before 5th April 2018 using CLSO 2, does it mean 2019 loan charge will be applied for 2018-2019 tax year with payment of no later than end of January 2020? What is the deadline for settlement?

Thanks,
Safe

[phil@pmtc]

The number of bankruptcies has been hugely underestimated and most of those won’t be able to work again - so instead of putting money into the U.K. evonomy, they’ll be takers by Being forced to live off benefits.

What a stupid government we have

Depressingly, this is absolutely correct. I'm sure they will find a way to fudge the numbers in an attempt to hide the bankruptcies but I'm forever receiving calls from worried individuals in tears at seeing their lives ripped apart.

[demby]

Daft question:

If I don't settle my case before 5th April 2018 using CLSO 2, does it mean 2019 loan charge will be applied for 2018-2019 tax year with payment of no later than end of January 2020? What is the deadline for settlement?

Thanks,
Safe

Yes - the 2019 loan charge will apply to your 2018-2019 self-assessment. This then needs to be completed by January 31 2020.

Not sure about the CLSO2 deadline - if it is April this year that doesn't leave much time. Especially as I got a call from HMRC in November saying they would send me some figures - still waiting!!!! tick-tock tick-tock

[difficulttimes]

Yes - the 2019 loan charge will apply to your 2018-2019 self-assessment. This then needs to be completed by January 31 2020.

Not sure about the CLSO2 deadline - if it is April this year that doesn't leave much time. Especially as I got a call from HMRC in November saying they would send me some figures - still waiting!!!! tick-tock tick-tock

I believe you have all the way up to Jan 31 2020 to settle. I've heard that you have to 'express' an interest in settling via CLSO2 by May 2018 which doesn't mean actually settling because as you say they are taking months to get numbers out and probably another 4-6 weeks to sort out your payment arrangements. You would think they would put more resources on it.
It also doesn't help that they are re-issuing their offer letter. Why not get that right before announcing CLSO2 as they must have known that people wouldn't have been happy with the terms

[webberg]

Timing is interesting.

CLSO 2 application no later than 31st May 2018.

18/19 tax return available 6/4/19

Details of outstanding loans to HMRC no later than 30/9/19

Assumption - no confirmation - that some form of assessment will be raised on the charge after 1/10/19

Assumption - no confirmation - that tax will be due on 31/1/20