Thread Modes Settle using CLSO for some years and let Loan Charge catch the rest

[MLeggsy]

Hi All,

Is it possible to Settle using a combination of the CLSO and the 2019 Loan Charge?

Maybe a number of you are in the same boat as me in that you have both partial years and full years in which you used Schemes.

I was involved with the AML PBT for 4 years, All open and communications ongoing.

2011-2012 - Part Year
2012-2013 - FULL Year
2013-2014 - FULL Year
2014-2015 - Part Year

If I settle (a big If), the most cost effective way for me personally would be to use the CLSO on the "Full" years and allow the Loan charge to "pick up" the remaining two "part" years.

I used a lot of allowances in the part years not expecting this additional income (lost my crystal ball) and would be able to keep income low in 2018/2019.

Thanks.

MLeggsy

[MLeggsy]

Hi Mods/Admin,

Can I have PM Access please :-)

[stonehenge]

Assuming HMRC don't insist that CLSO2 has to cover all years, then that sounds like a plan.

If you've got spare cash, you could potentially also make pension contributions to offset the LC.

[webberg]

Usually CLSO terms are "all or nothing".

It might be possible to exclude years which are still able to be amended (presently 13/14 onwards) but any year which can no longer be adjusted by you, would usually have to be part of the CLSO.

Leaving out a year and making a declaration may create tax in that year though and perhaps attract a penalty.

HMRC is clear that they think (incorrectly) that liability arises on you in the year the loan was drawn and that they will continue to chase enquiries regardless of the DR charge.

Personally I'd be amazed if HMRC continued enquiries after that retrospective charge hit. I think they see the charge as a line in the sand and are already planning to reallocate people to other things after that happens.

The best and cheapest way to find out is to call and ask them.

[MLeggsy]

The best and cheapest way to find out is to call and ask them.

You are spot on!

Thanks webberg

[phil@pmtc]

You are spot on!

Thanks webberg

I just called to ask, the guy said he has definitely seen it, so I guess it is possible.

[MLeggsy]

I just called to ask, the guy said he has definitely seen it, so I guess it is possible.

Thanks Phil, I appreciate your efforts!

I suppose if you don't ask you don't get.

MLeggsy

[EBTContractor]

Personally I'd be amazed if HMRC continued enquiries after that retrospective charge hit. I think they see the charge as a line in the sand and are already planning to reallocate people to other things after that happens.

The silly twats just sent me a DA for a year when i worked through my Ltd co. No loans etc.

Still clueless.