HMRC settlement Deadlines/delays and the LC

[uppoocreek]

Settlement pack

What is a settlement pack.
I have emailed them twice, then I called, only to find that they could find my emails, when I gave them the dates in march, but did not find any more info on what was happening.
The guy was helpful and I have since sent some figures.
But I have never received any pack.

I just received after 2 years of NO correspondence around this, my first communication from HRMC about this. It is the Loan Charge warning letter. I called HRMC and they sent over a the settlement pack (The settlement pack is a excel spreadsheet that HRMC have put together which you fill out and send back to them via the email address they give)

I was told by the person I talked to on the phone the following (I know not worth the recording that HMRC take!)

1) Complete the pack and they will get back within months (they are very busy!)
2) You only pay the TAX due at the rate for the tax year(s) you were involved. This means they add up all the income you had in that year and add on the loan amount as well. So you could end up in a higher tax bracket than you think.
3) They will allow time to pay and will assess you. BUT … this is part of the spreadsheet above and it does NOT have space for a detailed income and expenditure assessment. There is only 1 box for you to detail all your out goings and income. SO really important you add as much detail as possible
4) Its on a date received basis for the spreadsheet email, as to when they will assess how much you owe
5) You WILL be charged interest on any amount of outstanding loan you have up and until they reach agreement with you.
6) You will not be charged NIC
7) They will NOT add on the fee you paid the provider in calculating how much the loan was. So ONLY the actual amount you RECEIVED into your bank account.

This was MY experience TODAY (26-June-2018) yours might and from what others have said on these forms more than likely will be different from mine.

[ChimpMaster]

I just received after 2 years of NO correspondence around this, my first communication from HRMC about this. It is the Loan Charge warning letter. I called HRMC and they sent over a the settlement pack (The settlement pack is a excel spreadsheet that HRMC have put together which you fill out and send back to them via the email address they give)

I was told by the person I talked on the phone the following (I know not worth the recording that HMRC take!)

1) Complete the pack and they will get back within months (they are very busy!)
2) You only pay the TAX due at the rate for the tax year(s) you were involved. This means they add up all the income you had in that year and add on the loan amount as well. So you could end up in a higher tax bracket than you think.
3) They will allow time to pay and will assess you. BUT … this is part of the spreadsheet above and it does NOT have space for a detailed income and expenditure assessment. There is only 1 box for you to detail all your out goings and income. SO really important you add as much detail as possible
4) Its on a date received basis for the spreadsheet email, as to when they will assess how much you owe
5) You WILL be charged interest on any amount of outstanding loan you have up and until they reach agreement with you.
6) You will not be charged NIC
7) They will NOT add on the fee you paid the provider in calculating how much the loan was. So ONLY the actual amount you RECEIVED into your bank account.

This was MY experience TODAY (26-June-2018) yours might and from what others have said on these forms more than likely will be different from mine.

I was surprised to see that the past 15 years of HMRC's Counter Tax Avoidance resulted in a spreadsheet that a 10 year old could have created. What a farce.

BTW on point 5, interest is only on open years.

[Albert49]

NI

I just received after 2 years of NO correspondence around this, my first communication from HRMC about this. It is the Loan Charge warning letter. I called HRMC and they sent over a the settlement pack (The settlement pack is a excel spreadsheet that HRMC have put together which you fill out and send back to them via the email address they give)

I was told by the person I talked on the phone the following (I know not worth the recording that HMRC take!)

1) Complete the pack and they will get back within months (they are very busy!)
2) You only pay the TAX due at the rate for the tax year(s) you were involved. This means they add up all the income you had in that year and add on the loan amount as well. So you could end up in a higher tax bracket than you think.
3) They will allow time to pay and will assess you. BUT … this is part of the spreadsheet above and it does NOT have space for a detailed income and expenditure assessment. There is only 1 box for you to detail all your out goings and income. SO really important you add as much detail as possible
4) Its on a date received basis for the spreadsheet email, as to when they will assess how much you owe
5) You WILL be charged interest on any amount of outstanding loan you have up and until they reach agreement with you.
6) You will not be charged NIC
7) They will NOT add on the fee you paid the provider in calculating how much the loan was. So ONLY the actual amount you RECEIVED into your bank account.

This was MY experience TODAY (26-June-2018) yours might and from what others have said on these forms more than likely will be different from mine.

On Point 6, I believe that NI is not due where you were employed, but if Self Employed , and post 2011, then NI is due.

[uppoocreek]

I was surprised to see that the past 15 years of HMRC's Counter Tax Avoidance resulted in a spreadsheet that a 10 year old could have created. What a farce.

BTW on point 5, interest is only on open years.

So say I have a tax year in 2014/2015 which is still on my tax account, with a submitted Self assessment (SA.

Is that year classed as an open year? I don't have any enquires or APNs or DAs open for this year.

[Iter]

Interesting I have now rec contact via mail from someone in CA in response to the register auto reply message. No spreadsheet is attached but a number of requests for further informAtion about stmts/ trust deeds (similar to what you’d see in an enquiry letter). Is this method of enquiry allowed in this way?

[webberg]

Interesting I have now rec contact via mail from someone in CA in response to the register auto reply message. No spreadsheet is attached but a number of requests for further informAtion about stmts/ trust deeds (similar to what you’d see in an enquiry letter). Is this method of enquiry allowed in this way?

No.

HMRC is way out of their remit.

[CockneyRed]

Perplexed

What baffles me the most is the fact that HMRC can make up this bullsh1t retro tax and have the audacity to throw in interest too!!! How is that in any way moral? It's bad enough the tax but oh lets really screw them and demand interest on it.....

[me206et]

What baffles me the most is the fact that HMRC can make up this bullsh1t retro tax and have the audacity to throw in interest too!!! How is that in any way moral? It's bad enough the tax but oh lets really screw them and demand interest on it.....

I believe, and I am sure I will be corrected if wrong, interest is only charged on protected years.

That is years the HMRC have protected.
Either an open enquiry or in the 6 year window.

Not sure about discovery notices.

[ChimpMaster]

So say I have a tax year in 2014/2015 which is still on my tax account, with a submitted Self assessment (SA.

Is that year classed as an open year? I don't have any enquires or APNs or DAs open for this year.

They can still open an enquiry, so yes it will be viewed as open for interest purposes.

[porrker]

I was surprised to see that the past 15 years of HMRC's Counter Tax Avoidance resulted in a spreadsheet that a 10 year old could have created. What a farce.

BTW on point 5, interest is only on open years.

Lol they don’t have a joined up process/IT system and most of the work is carried out via spreadsheets after spending 10s of millions on digitising the process/IT system.