Isn't the loan charge treated as earned income in 2018/19? After all, it is assessed as PAYE and includes NICs.
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(Possibly) 100% legit ways of mitigating the loan charge
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Originally posted by Loan Ranger View PostIsn't the loan charge treated as earned income in 2018/19? After all, it is assessed as PAYE and includes NICs.
May I suggest you go and get some specialist advice rather than ignoring the warnings 3 different people on here are telling you. Personally I wouldn't want to play tricks with HMRC using my pension as I would quite like HMRC to not have any legal rights to go near said pension.merely at clientco for the entertainmentComment
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Originally posted by eek View PostMay I suggest you go and get some specialist advice rather than ignoring the warnings 3 different people on here are telling you. Personally I wouldn't want to play tricks with HMRC using my pension as I would quite like HMRC to not have any legal rights to go near said pension.
I've gone away and had a look and to be honest, I don't know the answer.
Certainly unused pension relief can be brought forward and used in a later year.
Certainly you can use pension contributions to relieve earned income.
What I don't know is whether the DR charge is treated as earned income. I have the point about it being a PAYE liability but that rests (initially) on the employer and the definition therefore cannot be indicative of there being earned income of the employee.
On the other hand the charge is treating loans as income and employment income at that and that is usually earned income.
So - I don't know.
I'm going to ask a few people who might.Best Forum Adviser & Forum Personality of the Year 2018.
(No, me neither).Comment
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Originally posted by webberg View PostI'm going to ask a few people who might.
I may be wrong but I don't think my option (3) investing in EIS, SEIS or VCT has the same restriction of it having to be earned income to qualify for relief.Comment
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Originally posted by Loan Ranger View PostThank you.
I may be wrong but I don't think my option (3) investing in EIS, SEIS or VCT has the same restriction of it having to be earned income to qualify for relief.merely at clientco for the entertainmentComment
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Originally posted by eek View PostSo we are now down to thinking (hoping?) rather than 100% sure. Don’t you think you should change the thread title?Comment
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Originally posted by Loan Ranger View PostI'll remove any options from the opening post if they are ineffective.merely at clientco for the entertainmentComment
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Originally posted by Loan Ranger View PostI'll remove any options from the opening post if they are ineffective.
There's a lot of posting motivated by schadenfreude.Comment
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Originally posted by stonehenge View PostMate, I'd be careful who you listen to on these forums.
There's a lot of posting motivated by schadenfreude.
Equally there are people on here who know that in a panic people may join another scheme or plan which may result in what was an already significant issue becoming significantly worse than it already may be.
That's why the mods won't allow people to discuss some "solutions" to schemes and why I'm unhappy with a post that claims to offer 100% legit solutions that seem to be based more on straw clutching than actual advice..merely at clientco for the entertainmentComment
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Originally posted by eek View PostI mean even the pension solution won't work if your income goes above £210,000 once the loans are taken into account.
If you go over £210k, you can still contribute £10k in the current year, and it doesn't affect carry forward.
https://www.youinvest.co.uk/sites/de...ward_guide.pdf
Stop spreading FUD.Comment
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