HMRC settlement Deadlines/delays and the LC

[Loan Ranger]

And a self employed contractor employed by his/her own Ltd company?

And are we talking employee nics or employer NICs? The latter amount to a very significant amount.

The LC19 excludes all class 1 NICs, apparently.

If you are employed by a Ltd Co then you're not self-employed.

Self-employed sole traders pay class 2 & 4 nics.

[JackH1]

If you are employed by a Ltd Co then you're not self-employed.

Self-employed sole traders pay class 2 & 4 nics.

Hey, I've been trying to work that out this evening! I really hope it's an employed contractor...

I had a Ltd company through principal contractors whilst working full time in local government for 18 months and Smartpay for 3 other years. I checked my tax return of 2016-17, the p45 says 'self-employed' on the form. However, Carnegie Knox paid the Employers NI not me. My deductions did include NI for the previous years but cannot see Emp NI marked.

Other contractors could be reading this with interest so is a good example.

[JackH1]

And a self employed contractor employed by his/her own Ltd company?

And are we talking employee nics or employer NICs? The latter amount to a very significant amount.

The LC19 excludes all class 1 NICs, apparently.

I would be worried if i had to pay Employer NI's on top, it is a large amount when you add the years.

[RickG]

I was told today that hmrc are stopping Ltd companies in liquidation from being struck off to protect their position on NICs. That implies to me they are looking to recover them by transferring liability to the employee.

I'm still unclear on whether that is employee NICs or employer NICs.

I also know that settlements which have occurred in the past month have included employee NICs. All very confusing. Hopefully Phil or Webberg can provide some first hand input from their own experiences of existing settlements to clarify rather than the second hand info I'm reiterating.

[JackH1]

I was told today that hmrc are stopping Ltd companies in liquidation from being struck off to protect their position on NICs. That implies to me they are looking to recover them by transferring liability to the employee.

I'm still unclear on whether that is employee NICs or employer NICs.

I also know that settlements which have occurred in the past month have included employee NICs. All very confusing. Hopefully Phil or Webberg can provide some first hand input from their own experiences of existing settlements to clarify rather than the second hand info I'm reiterating.

The position i'm in. A couple of weeks ago, Carnegie Knox provided a figure of the total loans I had with them. It was around 82,000. I applied the stats and was thinking i'll have to repay £23,000. Then after matching against my bank accounts there has been discrepancy (like in the position of others) the total loans to Apr 2017 is around £119k or over 90,000 to the period they are likely to of covered. So i applied the tax of 33% and thought oh around 35k, this seems steep in my position and was coming to terms with it (Somehow). Then today if i applied the Employers NI on top it would be 45-50k for the five years so panic, panic!!!

I probably won't know until WTT handle my settlement case what the position will be but it's frustrating and i'll fight it would be very unfair to be expected to pay the full cost. My Ltd company was struck off a few months ago.

I know this was touched on before. Is the tax year 2016-17 definately taxable?

Yes keep us updated!

[Crypto1]

Do you know if we will be expected to pay Employers NI ontop of the regular NICs in the settlement?

Thanks for all your feedback everyone.

I am slightly confused about the information related to NICS. I assume this is extra tax to pay once I choose to settle and if so, will I be able to find this on my tax return whether or not I have already paid this? Thanks.

[Crypto1]

The position i'm in. A couple of weeks ago, Carnegie Knox provided a figure of the total loans I had with them. It was around 82,000. I applied the stats and was thinking i'll have to repay £23,000. Then after matching against my bank accounts there has been discrepancy (like in the position of others) the total loans to Apr 2017 is around £119k or over 90,000 to the period they are likely to of covered. So i applied the tax of 33% and thought oh around 35k, this seems steep in my position and was coming to terms with it (Somehow). Then today if i applied the Employers NI on top it would be 45-50k for the five years so panic, panic!!!

I probably won't know until WTT handle my settlement case what the position will be but it's frustrating and i'll fight it would be very unfair to be expected to pay the full cost. My Ltd company was struck off a few months ago.

I know this was touched on before. Is the tax year 2016-17 definately taxable?

Yes keep us updated!

Hi there. I am having trouble trying to do the maths on my taxable loans. Will someone be able to advise how to use/an approximate amount of tax I would have to pay on the below loans for each year.

2015-16-35,866
2016-17-64,472

If I settle will these be treated at 25% tax on both items. Never claimed any form of expenses.

Cheers

[Crypto1]

To clarify -- HMRC can only come back for more if you have open enquiries (or the year is within the timeframe for them to open one)

Hi Phil, to clarify when you say come back for within the timeframe. What is that timeframe please.
I have loans between 2015-2016 and 2016-2017.
Thanks. At present I do not have any open enquiries from HMRC.

[AVFC]

Self employed!

Hey, I've been trying to work that out this evening! I really hope it's an employed contractor...

I had a Ltd company through principal contractors whilst working full time in local government for 18 months and Smartpay for 3 other years. I checked my tax return of 2016-17, the p45 says 'self-employed' on the form. However, Carnegie Knox paid the Employers NI not me. My deductions did include NI for the previous years but cannot see Emp NI marked.

Other contractors could be reading this with interest so is a good example.

Hi JackH1, If you are self employed then surely you can submit expenses such as motor mileage and subsistence via a Self Assessment for each of the years to offset against any liabilities seems to make sense to me but again speak to an accountant for this position.

[AVFC]

Loan statement figures

The position i'm in. A couple of weeks ago, Carnegie Knox provided a figure of the total loans I had with them. It was around 82,000. I applied the stats and was thinking i'll have to repay £23,000. Then after matching against my bank accounts there has been discrepancy (like in the position of others) the total loans to Apr 2017 is around £119k or over 90,000 to the period they are likely to of covered. So i applied the tax of 33% and thought oh around 35k, this seems steep in my position and was coming to terms with it (Somehow). Then today if i applied the Employers NI on top it would be 45-50k for the five years so panic, panic!!!

I probably won't know until WTT handle my settlement case what the position will be but it's frustrating and i'll fight it would be very unfair to be expected to pay the full cost. My Ltd company was struck off a few months ago.

I know this was touched on before. Is the tax year 2016-17 definately taxable?

Yes keep us updated!

I have just had a draft statement via the Trust Helpline for my loans with Dynamic Partners and two years were 8k to high after cross referencing P11D and bank statements so I would beware that there are further scammers out there trying to fleece people. They also said that there 5% charge of total loans value and plus £250 admin change to release me from the deeds once I settle with HMRC to which I replied that this would be legally challenged.

To anyone dealing with Trust Helpline do some digging as I suspect they are very closely linked to Dynamic Partners