HMRC contractor Loan harge
Dear Phil,
I have been following your advise on here for a while and wanted to reach out. I was hoping you might be able to advise on the below queries if possible.
I joined SP Management in 2013 for 3 months. Following that I was in a permanent job / out of employment up until August 2015 when I rejoined the SPM scheme.
I have been told by PTS that loan amount subject to charge is £110,101.51.
Few questions based on the above.
1) Will this be taxed at 35% (if I agree to settle) or will this be less? Reason I ask is that on the example scenario on The Knox trust website (link below) shows that £180,000 loan had a tax payable of £50,000 which is approximately 27.7%. I have never claimed any form of expense and have paid NI etc on previous tax returns.
https://knoxhousetrust.com/2019-loan...on/#settlement
2) Do I have to declare all loans before 2016? I heard that it's only loans after 2016 that need to be declared and that are affected.
3) What are unprotected versus protected loans and how does it affect me in my particular case?
4) What is the worst case scenario regarding tax on my loan versus being subject to the loan charge?
5) 40,000 people are estimated to be affected on SP Management and a further 200,000 affected in the UK. I have to ask why should I even declare now, perhaps I should wait until HMRC come to me? I have no open enquiries and have never been queried by HMRC.
6) How do I know if my scheme has a DOTAS or promotion reference number?
7) I have been told by SPM that loans paid through SPM Malta are not taxable. Is that correct?
I think these are all the questions I have at this stage. Thanks so much.
Regards
Originally posted by phil@dswtres
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I have been following your advise on here for a while and wanted to reach out. I was hoping you might be able to advise on the below queries if possible.
I joined SP Management in 2013 for 3 months. Following that I was in a permanent job / out of employment up until August 2015 when I rejoined the SPM scheme.
I have been told by PTS that loan amount subject to charge is £110,101.51.
Few questions based on the above.
1) Will this be taxed at 35% (if I agree to settle) or will this be less? Reason I ask is that on the example scenario on The Knox trust website (link below) shows that £180,000 loan had a tax payable of £50,000 which is approximately 27.7%. I have never claimed any form of expense and have paid NI etc on previous tax returns.
https://knoxhousetrust.com/2019-loan...on/#settlement
2) Do I have to declare all loans before 2016? I heard that it's only loans after 2016 that need to be declared and that are affected.
3) What are unprotected versus protected loans and how does it affect me in my particular case?
4) What is the worst case scenario regarding tax on my loan versus being subject to the loan charge?
5) 40,000 people are estimated to be affected on SP Management and a further 200,000 affected in the UK. I have to ask why should I even declare now, perhaps I should wait until HMRC come to me? I have no open enquiries and have never been queried by HMRC.
6) How do I know if my scheme has a DOTAS or promotion reference number?
7) I have been told by SPM that loans paid through SPM Malta are not taxable. Is that correct?
I think these are all the questions I have at this stage. Thanks so much.
Regards
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