Loan Charge - sanity check

[VillageIdiotDan]

I am assuming they are not allowing you to settle as you have 'officially' missed the deadline to settle. However, if you would like to consider settling, then I would contact your MP and advise him/her of this and ask them to contact HMRC on your behalf stating that exact fact, that you want to settle and they are preventing you from doing so. Pressure from your MP may just make them think twice. If not, you are nothing out and have your MP engaged on the subject as well. Whether he/she is for or against the loan charge is irrelevant in this case, as you are asking them to help you settle a tax liability.

Thanks, I'm certainly open to the idea but struggle with the concept of what a settlement achieves that the loan charge doesn't. Is it that a settlement closes the issue completely, where paying the loan charge is simply a payment of the tax, with HMRC then having the option to come at me for the interest charges only? Interest charges, surcharges and any other dubious penalties they feel will stick?

[webberg]

with HMRC then having the option to come at me for the interest charges only?

Not the "option".

A certainty.

Best to see the loan charge as a NEW tax that has no connection with settlement or agreeing open years' enquiries.

The only difference being that the NEW tax can be offset some of the tax due on those open years. (With the kicker that if you pay too much loan charge, you can't get it back).

[regron]

Thanks, I'm certainly open to the idea but struggle with the concept of what a settlement achieves that the loan charge doesn't. Is it that a settlement closes the issue completely, where paying the loan charge is simply a payment of the tax, with HMRC then having the option to come at me for the interest charges only? Interest charges, surcharges and any other dubious penalties they feel will stick?

I think the best thing for you to do is speak to a tax adviser, explain the situation you are in i.e. what schemes, years open / closed etc.. at which point they will be able to provide you with the options available to you based on your own personal circumstance. There is also plenty of information on the forum that should help bring you up to speed, but making a quick phone call (of which most do the initial call for free) will hopefully at least give you the options available for consideration.