AML Loan Charge Calculator

[Loan Ranger]

Use this calculator.

https://www.uktaxcalculators.co.uk

Worked Example

Tax year 2008/9.

You received a salary of £15k. You paid £1,793 in tax on it.

You received loans of £80k. Plugging total £95k into the calculator, gives tax of £28,626.

Settlement would be £28,626 less what you've already paid £1,793. Ie. £26,833

If it's a protected (open) year, interest on top would be approximately 26% ie. £6,976

-------------------------

Tax Year...........Accrued Interest
2001/2....................72%
2002/3....................66%
2003/4....................60%
2004/5....................52%
2005/6....................46%
2006/7....................38%
2007/8....................30%
2008/9....................26%
2009/10...................23%
2010/11...................20%
2011/12...................17%
2012/13...................14%
2013/14...................11%
.

PS. interest and other handy stuff is included in the PDF
https://forums.contractoruk.com/hmrc...g-vs-lc19.html

[luxCon]

What makes n Open year (subject to interest)?

Thank for the attached.

I have two years under inquiry, one with Section 9A, COP8 letter, and another year Assessment Under Discovery Provisions Section 29.


Do I take that both years are open subject to interest, or only one of them?

Thanks

[Loan Ranger]

Both, unfortunately.

Either an s9a or s29 count as open (protected).

[LOL17]

Are my figures correct?

I started using AML in December 2014 and up until then I was a PAYE employee. As an employee I earned £21,237 in the 2011/2012 tax year on which I paid £3,125.40 of income tax according to my P45. I then earned £26,701 as a contractor through AML and my tax return showed I owed another £432.80 in income tax which I paid.

Plugging my total income for that tax year into the calculator above gives an income tax figure of £9,185.00, does that sound about right? I did have a workplace pension and I opened a private pension when I started contracting but to keep things simple for now I haven't included either pension in my calculation.

HMRC opened an investigation for that tax year and they came up with a figure of £22,522.60.

[Loan Ranger]

Are my figures correct?

I started using AML in December 2014 and up until then I was a PAYE employee. As an employee I earned £21,237 in the 2011/2012 tax year on which I paid £3,125.40 of income tax according to my P45. I then earned £26,701 as a contractor through AML and my tax return showed I owed another £432.80 in income tax which I paid.

Plugging my total income for that tax year into the calculator above gives an income tax figure of £9,185.00, does that sound about right? I did have a workplace pension and I opened a private pension when I started contracting but to keep things simple for now I haven't included either pension in my calculation.

HMRC opened an investigation for that tax year and they came up with a figure of £22,522.60.

Are those dates correct?

[LOL17]

Are those dates correct?

Ha ha, no they're not. I started using AML in December 2011 and officially left in December 2014 although my last time sheet was for October 2014.

[Loan Ranger]

If you're total earnings in 2011/12 were

PAYE employee salary = £21,237
AML salary + loans = £26,701

Then no way is HMRC's figure of £22,522.60 tax correct.

HMRC may have assumed you were with AML the whole year.

[LOL17]

If you're total earnings in 2011/12 were

PAYE employee salary = £21,237
AML salary + loans = £26,701

Then no way is HMRC's figure of £22,522.60 tax correct.

HMRC may have assumed you were with AML the whole year.

I didn't think it was correct. I'm not sure the best way to challenge it with HMRC without opening a can of worms for subsequent tax years. I think I shall take advice on this one.

[Instrumental]

I didn't think it was correct. I'm not sure the best way to challenge it with HMRC without opening a can of worms for subsequent tax years. I think I shall take advice on this one.

I had exactly the same. Joined AML in Jan 2014 after being PAYE - AML did my tax return for the 2013-14 Tax Year and lo-and-behold HMRC come back with a figure assuming AML for the whole year. They obviously didn't do any in-depth work and probably just took a shotgun approach to all AML returns.

[pateen]

Thank for the attached.

I have two years under inquiry, one with Section 9A, COP8 letter, and another year Assessment Under Discovery Provisions Section 29.


Do I take that both years are open subject to interest, or only one of them?

Thanks

I rang HMRC to find out three years out of 8 were not under enquiry. Told me directly over the phone which I guess means no interest payemnet.