HMRC settlement Deadlines/delays and the LC

[mayfire]

So the deadline to register interest in settling is Thursday 31st May

What is the deadline to actually agree a settlement?

[Delendog]

So the deadline to register interest in settling is Thursday 31st May

What is the deadline to actually agree a settlement?

The next deadline is to supply all information by 30th September 2018. Need to agree settlement before the loan charge comes into effect so I'd assume before the date that loan info has to be supplied which is Sept 2019.

[Pine2014]

Protected Vs Unprotected years

Hi Guys

I am very sorry if this question has already been covered.
i have been a way for a few weeks and have returned to this bombshell.
I am under alot of stress with the deadline fast approaching and am trying to understand what i need to do.

Can somebody please tell me the distinction between protected and unprotected years and how do I know which category the years for which i have outsanding loans fall under.

Your help is much appreciated.

Thanks

[Pine2014]

Protected Vs Unprotected years

Hi

So I just read:

"protected years are ones where HMRC opened an enquiry or raised an assessment"

But what's the implications of this?
I have loans for the periods
2007/08
2009/10
2010/11
2011/12

HMRC raised enquiries about 2 of these years.
I submitted Self Assessment Tax Returns for all of these years.
What does this mean?
Do I have to pay the amount they calculated in their enquiry or will it be more/less?

Any help appreciated.

Thanks

[Delendog]

Hi

So I just read:

"protected years are ones where HMRC opened an enquiry or raised an assessment"

But what's the implications of this?
I have loans for the periods
2007/08
2009/10
2010/11
2011/12

HMRC raised enquiries about 2 of these years.
I submitted Self Assessment Tax Returns for all of these years.
What does this mean?
Do I have to pay the amount they calculated in their enquiry or will it be more/less?

Any help appreciated.

Thanks

Under CLSO2 you will have to pay tax on all those years based on the tax that would have been due in the year in question. For the 2 years that have enquiries you will also have to pay interest.

If you wait until the 2019 Loan Charge you will pay tax on all loans for all years as if you received the money in the 2018/19 tax year. that will be on top of any income you earn this year as well so depending on loan values you could be in restricted personal allowance territory and also 45% tax bracket.

As an example for me CLSO2 works out about £169K and Loan Charge £210k - either not good!

[Pine2014]

Protected Vs Unprotected years

Under CLSO2 you will have to pay tax on all those years based on the tax that would have been due in the year in question. For the 2 years that have enquiries you will also have to pay interest.

If you wait until the 2019 Loan Charge you will pay tax on all loans for all years as if you received the money in the 2018/19 tax year. that will be on top of any income you earn this year as well so depending on loan values you could be in restricted personal allowance territory and also 45% tax bracket.

As an example for me CLSO2 works out about £169K and Loan Charge £210k - either not good!

Thanks very much for your response.
I'm very sorry to hear your predicament.

Can i please ask how you calculated your CLSO2 and Loan Charge amounts?

[DontSettle]

Hi

So I just read:

"protected years are ones where HMRC opened an enquiry or raised an assessment"

But what's the implications of this?
I have loans for the periods
2007/08
2009/10
2010/11
2011/12

HMRC raised enquiries about 2 of these years.
I submitted Self Assessment Tax Returns for all of these years.
What does this mean?
Do I have to pay the amount they calculated in their enquiry or will it be more/less?

Any help appreciated.

Thanks

Remember to take into account that if you settle under HMRC's terms now you will never see your money again and you have admitted to tax avoidance so they will be back for more when they fancy it.

[Pine2014]

Remember to take into account that if you settle under HMRC's terms now you will never see your money again and you have admitted to tax avoidance so they will be back for more when they fancy it.

Is that the case if you even register your interest?

The whole thing is so confusing- so many different opinions.

Also, how do they know the amount of your loans? I don’t even know how I’m going to get this information easily?

[Albert49]

I would suggest you register for CLSO2 , registering is not an admission on anything, but keeps the CLSO2 option open.
I don't believe all of what DontSettle says is correct, it is true you will not get your money back, if for example the 2019 loan charge is withdrawn (which in reality is unlikely), but it is closure for the years you settle, every year you settled is finalised and HMRC cannot come back and claim anything else for those years (as long as your loan figures are not later found to be too low).
As for find out your loan figures, either approach whoever ran your scheme, or better still approach your bank and ask for statements for the years in question, I was able to get statements back to 2006 from HSBC.
If 2 of your years are unprotected (also known as closed), you have the option on not settling them and leaving them for the 2019 Loan Charge , and if you have the funds making a large pension contributon to offset the tax, see this post by Loanranger for details: https://forums.contractoruk.com/hmrc...ieve-lc19.html

[WTFH]

Remember to take into account that if you settle under HMRC's terms now you will never see your money again and you have admitted to tax avoidance so they will be back for more when they fancy it.

Please explain your basis for this comment. Are you a tax advisor?