HMRC Scheme Enquiries (No Big Group champions or tax advisors here please)

[ChimpMaster]

Is this the option to use pension allowances to offset the Loan charge? ie pay the money into a pension fund rather than to HMRC? It's something I'm looking into as it seems a good way out of this mess.

I was looking at the same idea but the numbers aren't as good as one might initially think, and of course you need a boatload more money to do this.

Try running some numbers on various income/loan/pension amounts for 2019 and see what you get.

[ConfusedEasily]

yes. speak to phil@dswtres or other advisor for further info.

guys for advisor information it is best using another thread as advisors are not aloud to use this thread (so at best all you will get from this thread is 'hear say').

Please note - you can't use Pensions for CLSO2. HMRC have confirmed that.

[cojak]

Is this the option to use pension allowances to offset the Loan charge? ie pay the money into a pension fund rather than to HMRC? It's something I'm looking into as it seems a good way out of this mess.

No Tax Advisors are allowed on this thread.

[Finalwhistle]

Is this the option to use pension allowances to offset the Loan charge? ie pay the money into a pension fund rather than to HMRC? It's something I'm looking into as it seems a good way out of this mess.

yes. speak to phil@dswtres or other advisor for further info.

guys for advisor information it is best using another thread as advisors are not aloud to use this thread (so at best all you will get from this thread is 'hear say').

[Cyclonic]

***UPDATE** turns out this is actually an option. For those who’re close to retirement or using pension pots to settle make sure you ask your advisor about this. Or again I can give you the name of the advisor I am liaising with via PM to give you more details. P.S he’s the same one who will hold your hand through CLSO for 500 notes

Is this the option to use pension allowances to offset the Loan charge? ie pay the money into a pension fund rather than to HMRC? It's something I'm looking into as it seems a good way out of this mess.

[Loan Ranger]

Yes, pension contributions can be used to get tax relief on LC19

One way to give less money to HM Robbers and Crooks.

https://forums.contractoruk.com/hmrc...ieve-lc19.html

[Finalwhistle]

I think I may have mentioned this before but I would love for a large group of us to push HMRC so that a %age of the total tax due could be put into a private pension fund.
Surely allowing a small margin to go into pension funds is a win win for everyone involved? And might be something they are willing to discuss (although I appreciate are not actually legally or obliged to provide).

***UPDATE** turns out this is actually an option. For those who’re close to retirement or using pension pots to settle make sure you ask your advisor about this. Or again I can give you the name of the advisor I am liaising with via PM to give you more details. P.S he’s the same one who will hold your hand through CLSO for 500 notes

[ConfusedEasily]

I hope it works out for you and everyone else involved. I’ve spent the money I would have put into BG into crypto currency as I think that has more chance of a return personally (unless they change the tax laws on that too).
I think I may have mentioned this before but I would love for a large group of us to push HMRC so that a %age of the total tax due could be put into a private pension fund. My life financial strategy has been to borrow and invest; hence these loan arrangements suited me. Had I realised that these schemes were illegal from the start (yes ok I know what you’re thinking) then I would have put more aside into pensions to avoid tax that way.
Surely allowing a small margin to go into pension funds is a win win for everyone involved? And might be something they are willing to discuss (although I appreciate are not actually legally or obliged to provide).
But I guess no tax advisors would stand from any financial gain in achieving this sooooo.....

It's a fair point. HMRC, by their complete ****wittery and inability to deal with any of this tulip in a timely manner, have severely impacted people lives.

[Finalwhistle]

I'm afraid that HMRC would contest that the tax law at the time would still see your scheme as ineffective. If you did recognise that it was a risk and have kept the tax in reserve then you are in a small minority. Certainly none of my colleagues who are in this mess kept a penny for such an eventuality and I've pointed them at 'the tax advisor who cannot be mentioned on this thread but who charges 500'. We're also giving them contractual assurances that if HMRC makes them insolvent they will keep their jobs.

I'm taking a risk in not settling with HMRC and pursuing the 'widely advertised and not to be mentioned on this thread' other path. Why? Because I can afford it if the approach fails and because the independent legal advice I have access to suggests that, at the moment, it's actually got legs. But I just want HMRC to sweat a bit for the ******* tulip they have needlessly piled on those who were not as wise as you.

I hope it works out for you and everyone else involved. I’ve spent the money I would have put into BG into crypto currency as I think that has more chance of a return personally (unless they change the tax laws on that too).
I think I may have mentioned this before but I would love for a large group of us to push HMRC so that a %age of the total tax due could be put into a private pension fund. My life financial strategy has been to borrow and invest; hence these loan arrangements suited me. Had I realised that these schemes were illegal from the start (yes ok I know what you’re thinking) then I would have put more aside into pensions to avoid tax that way.
Surely allowing a small margin to go into pension funds is a win win for everyone involved? And might be something they are willing to discuss (although I appreciate are not actually legally or obliged to provide).
But I guess no tax advisors would stand from any financial gain in achieving this sooooo.....

[ConfusedEasily]

We got ourselves into this mess based on the Laws and legislation at the time. It was always a risk yes and if you've spent the money and kept nothing in reserve then that maybe is the mistake. Taking on a risk with no contingency is definitely a mistake.

I'm afraid that HMRC would contest that the tax law at the time would still see your scheme as ineffective. If you did recognise that it was a risk and have kept the tax in reserve then you are in a small minority. Certainly none of my colleagues who are in this mess kept a penny for such an eventuality and I've pointed them at 'the tax advisor who cannot be mentioned on this thread but who charges 500'. We're also giving them contractual assurances that if HMRC makes them insolvent they will keep their jobs.

I'm taking a risk in not settling with HMRC and pursuing the 'widely advertised and not to be mentioned on this thread' other path. Why? Because I can afford it if the approach fails and because the independent legal advice I have access to suggests that, at the moment, it's actually got legs. But I just want HMRC to sweat a bit for the ******* tulip they have needlessly piled on those who were not as wise as you.