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

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

    In order to satisfy those who feel that tax advisors have too much of a voice in this forum, feel free to use this thread (I've linked to another thread that offers the same option https://forums.contractoruk.com/hmrc...on-thread.html).

    This isn't a place for a slanging match so please don't post derogatory comments regarding those people I've asked not post. I will respond if they don't; this will end in a ban.

    And remember - the people posting on here ARE NOT TAX ADVISORS.

    YOU are responsible for your own due diligence, I suggest you look around the forum rather than just relying on this thread.
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

    #2
    Worth the money?

    Hello,
    I have received an enquiry letter about a loan I received and am in a position whereby a tax advisor is offering to respond to the enquiry for 12 months for a charge. Fine.
    However these enquiries are notoriously slow and I don’t really see how such an enquiry will be concluded within the next 15 months prior to April 2019 (loan tax day). Come April 2019 I’m guessing I will be affected by the loans tax irrelevant of what stage of the enquiry is, is this correct?
    My arrangement involves receiving a loan from the employer with a guarantee that I repay within 10 years. It is not DOTAS or otherwise EBT registered.
    So am I throwing money down the drain on dragging the enquiry out or should I instead be planning the cheapest exit strategy possible in time for April 19?
    Anyone else in a similar position?
    Thanks

    Comment


      #3
      Originally posted by Finalwhistle View Post
      Hello,
      I have received an enquiry letter about a loan I received and am in a position whereby a tax advisor is offering to respond to the enquiry for 12 months for a charge. Fine.
      However these enquiries are notoriously slow and I don’t really see how such an enquiry will be concluded within the next 15 months prior to April 2019 (loan tax day). Come April 2019 I’m guessing I will be affected by the loans tax irrelevant of what stage of the enquiry is, is this correct?
      My arrangement involves receiving a loan from the employer with a guarantee that I repay within 10 years. It is not DOTAS or otherwise EBT registered.
      So am I throwing money down the drain on dragging the enquiry out or should I instead be planning the cheapest exit strategy possible in time for April 19?
      Anyone else in a similar position?
      Thanks

      Hi FinalWhistle,

      I am in exactly same position. can we have a chat. Was your loan from a third party trust?
      What are you planning? For which year have you got enq

      Comment


        #4
        Can we have a PM access pls.

        Comment


          #5
          listening

          Originally posted by simran View Post
          Can we have a PM access pls.
          Hi Simian,

          Of course yes we can have a chat. You ask about the loans i.e. whether it is a trust or not. But if i'm honest i'm starting to think that that question is irrelevant. a loan is a loan is a loan...and as far as i'm aware all loans are being picked up by this loan tax.

          Although i've posted this into a no tax advisors web page i'm thinking i would quite like their advise. I may re-post this on another thread...

          Comment


            #6
            Regarding groups like BG

            The question, people need to ask themselves, is what are the chances of a group achieving a better outcome than CLSO2?

            CLSO2 has a limited window of opportunity. You have to register an interest by 31st May, and provide info by 30th September.
            https://www.rossmartin.co.uk/investi...nt-opportunity

            Obviously it works out better for people with closed years, where there is no interest.

            If you don't settle within the next 14 months (by 5/4/19) then you will fall into the loan charge. The campaign groups may fight the charge but again, realistically, what are the chances of them negating an Act of Parliament?

            Obviously if you can't pay, even via TTP, then a group may be your only hope.

            Comment


              #7
              Thanks stonehenge.

              Any questions regarding groups and tax advisors should be posed in other threads, they will not be allowed in this thread.
              "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
              - Voltaire/Benjamin Franklin/Anne Frank...

              Comment


                #8
                Originally posted by stonehenge View Post
                The question, people need to ask themselves, is what are the chances of a group achieving a better outcome than CLSO2?

                CLSO2 has a limited window of opportunity. You have to register an interest by 31st May, and provide info by 30th September.
                https://www.rossmartin.co.uk/investi...nt-opportunity

                Obviously it works out better for people with closed years, where there is no interest.

                If you don't settle within the next 14 months (by 5/4/19) then you will fall into the loan charge. The campaign groups may fight the charge but again, realistically, what are the chances of them negating an Act of Parliament?

                Obviously if you can't pay, even via TTP, then a group may be your only hope.
                You're right of course about CLSO2 and it's something I'm looking into very seriously. A number of people have said to just call up HMRC and get the tax figure directly from them. I guess this is easy if you know the loan amounts/dates etc otherwise HMRC will 'kindly' estimate a number out of thin air for you.

                It's highly improbable that a tax advisor can get you a better financial deal. But in many ways a tax advisor can prove to be invaluable in dealing with HMRC, even when it's a pretty straightforward case. If anything, they provide a level of comfort and a degree of separation, and check that HMRC aren't screwing you over either financially or on the settlement contract terms. Of course their fees should be reasonable and proportionate.

                And as I understand it, even if you settle under CLSO2, you still need to report on the 2019LC. Probably so that HMRC can check the numbers again and then come back for more tax if they think you've understated on CLSO2. This is one of the caveats Webberg has warned of.

                Settlement does not mean closure.

                And the LC is not a tax payment.

                So where the f&&k does it all end.

                Comment


                  #9
                  Definitely some kind of contract settlement will be required. Not sure if only a tax advisor can do this

                  Comment


                    #10
                    Worth the risk

                    Originally posted by stonehenge View Post
                    The question, people need to ask themselves, is what are the chances of a group achieving a better outcome than CLSO2?

                    CLSO2 has a limited window of opportunity. You have to register an interest by 31st May, and provide info by 30th September.
                    https://www.rossmartin.co.uk/investi...nt-opportunity

                    Obviously it works out better for people with closed years, where there is no interest.

                    If you don't settle within the next 14 months (by 5/4/19) then you will fall into the loan charge. The campaign groups may fight the charge but again, realistically, what are the chances of them negating an Act of Parliament?

                    Obviously if you can't pay, even via TTP, then a group may be your only hope.

                    What do you mean by “obviously better for people with closed years?” What does the term closed years mean?
                    How is CLSO different from just declaring the loan as income on the relevant tax return?

                    Comment

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