Originally posted by FakeHorizon
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Horizon exit opportunity (Non-Big Group discussion thread)
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Originally posted by me206et View PostThat's all very well. But how long are you supposed to keep records. I might have some info re loans in 2000/2002 but not complete figures, and not all schemes?STRENGTH - "A river cuts through rock not because of its power, but its persistence"Comment
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Originally posted by luxCon View Post
Is there a way to force and demand the Trustee to accept the current book value of the loan and pay it off now?Comment
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Originally posted by Iliketax View PostYou have to supply the information to HMRC yourself. If you don't, it's a £300 penalty, which can then increase to £60 per day for not doing it. If you supply inaccurate info, there's another £3,000. HMRC will create a "digital tool" for you to supply the information.
To be fair to whoever you paid, this only came out yesterday morning and is still in draft.
HMRC has also been quite clever about this in that (i) if they know of the scheme already then they put a tick on their list of schemes, (ii) if one person reports a new scheme then they add that to the list and can try to find out who else has participated.Comment
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Originally posted by FakeHorizon View PostThe new trustee won't provide details to HMRC of loans which have been paid back, so the onus would then be on the borrower to confess all, is what you're saying. Do HMRC then demand tax on the loan rendering the earlier repayment of the loan pointless. I'd ask the accountant I've already paid £1k to for their advice but that would be pointless as their sole aim is to generate revenue for themselves.Last edited by starstruck; 14 September 2017, 14:45.Comment
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Originally posted by starstruck View PostCan you be sure of that? Trustees may be legally forced to disclose all loans ever made even if currently written off (that is my understanding of how it will work anyway). I thought you suggesting paying back the outstanding balance (current book value) as opposed to the original value. I think they would have to report the original amount. As far as I am aware you'd have to repay the original loan in full and never get it back to be truly in the clear.merely at clientco for the entertainmentComment
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Originally posted by FakeHorizon View PostThe new trustee won't provide details to HMRC of loans which have been paid back, so the onus would then be on the borrower to confess all, is what you're saying. Do HMRC then demand tax on the loan rendering the earlier repayment of the loan pointless. I'd ask the accountant I've already paid £1k to for their advice but that would be pointless as their sole aim is to generate revenue for themselves.
We also don't know whether HMRC will "demand tax on the loan" or whether you will have to pay it via self-assessment or some other way yet. That's not been published (my guess is to look out for 22 November). My guess is that if the employer is no longer around you will have to self-assess it but who knows.
I don't know the details of your scheme. But it sounds like you have a loan where "it is reasonable to suppose that the main reason, or one of the main reasons, for the loan being made in that currency is that the loan currency is expected to depreciate as against sterling during the loan period". On that basis, only the sterling value of the loan repayment counts. So if you borrowed 10,000 ickies (worth £10,000) and repaid 10,000 ickies (when worth £1) then you have a £9,999 loan for the April 2019 loan charge. So by repaying £1 you save up to £0.47 in tax and NIC. If that is right (and the only thing you have to worry about) then it does not sound like it is worth paying the £1. But I don't know what your facts are.Comment
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Originally posted by Clairol View PostWhat is the relevance of the budget please?
I am sure if I a wrong someone will correct me.Comment
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Originally posted by starstruck View PostCan you be sure of that? Trustees may be legally forced to disclose all loans ever made even if currently written off (that is my understanding of how it will work anyway). I thought you suggesting paying back the outstanding balance (current book value) as opposed to the original value. I think they would have to report the original amount. As far as I am aware you'd have to repay the original loan in full and never get it back to be truly in the clear. (but I'm not really in the know - just repeating what I've read)
for other points above, the new trustee will do everything they can to make the borrower pay back the full sterling value of the loan, ignoring the whole forex thing which was going on at the time.Comment
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Originally posted by FakeHorizon View Postthe new trustee will do everything they can to make the borrower pay back the full sterling value of the loan, ignoring the whole forex thing which was going on at the time.
And putting tax aside for now, what benefit are you getting from repaying £10,000? What future benefit are you expecting?Comment
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