Loan Charge review - round #2

[ChargeConcern]

Hi

Sorry this is the wrong place/thread to ask but I am one of the people who knew nothing about the Loan Charge until a mail dropped through my door a few weeks ago. I also apologise if this has been covered elsewhere on the site and I haven't tracked it down
My loans all relate to 15 to 17 years ago
I have been frantically trying to understand and quantify my liability since then. Is anyone able to confirm whether Loans which have been waived (in this case in 2006) and where the EBT was closed over 10 years ago are still liable?

[DavidD]

I just received this from HMRC:

Thank you for your e-mail which was received on Xxxxx

Following the Prime Minister’s announcement on 4 September 2019, the Chancellor, Sajid Javid, has commissioned an independent review of the Disguised Remuneration Loan Charge led by Sir Amyas Morse, former Chief Executive and Comptroller and Auditor General of the National Audit Office.



While the review is ongoing, the Loan Charge remains in force, in line with current legislation.



We recognise customers may be unclear what they should do for the 30 September information return, and/or settling their disguised remuneration affairs whist the review is underway. To help those affected we have published guidance on GOV.UK which is available at: https://assets.publishing.service.go...review_web.pdf

[dammit chloe]

Interpret how you will. To me sounds like if you have start on the road to settlement before 5th April ( ie submitted loan figures ) then you don't need to submit. This is consistent with what another tax advisor says.

HM Revenue & Customs on Twitter: "If you’re affected by the loan charge and didn’t take action to settle by 5 April 2019, you need to complete an information return by 30 September 2019. The loan charge review doesn’t change this https://t.co/waLV6GGUug… https://t.co/KxSzJs4G6v"

[Dmac]

The following is an extract from Jesse Norman's letter to all MP dated 11 September 2016:-

"Individuals should continue to prepare to file a 2018-19 Self Assessment return and pay
the Loan Charge by 31 January 2020. However, we do not know what Sir Amyas will
recommend and I recognise that naturally some individuals may have concerns about
forthcoming deadlines ahead of the Review’s conclusion.

As a result, I can confirm that I have agreed with HMRC that those in the process of
settling will be able to pause and wait for the outcome of the Review before deciding
whether to proceed. However, individuals who are subject to the Loan Charge but who
have not yet settled should still submit an information return to HMRC setting out their
loan balance by 30 September 2019."

This letter was sent to a constituent by his MP, who received it from Mr Norman. Can't actually find the letter anywhere official though so treat with the usual caution.

[webberg]

An email from HMRC (or, more correctly, a report from randomers on the internet of emails from HMRC) does not override what is written in law. What's your attitude to risk?

Have you read this: https://assets.publishing.service.go...review_web.pdf ?

Agreed.

I do not trust a statement from HMRC over the statute.

Unless you have a final settlement offer agreed, I would recommend disclosing.

[Paralytic]

Yep seen that and trust his judgement.

But I've also seen people post emails from HMRC after Webberg's post that saying HMRC will be making an announcement regarding the 30/9 loan reporting.

An email from HMRC (or, more correctly, a report from randomers on the internet of emails from HMRC) does not override what is written in law. What's your attitude to risk?

Have you read this: https://assets.publishing.service.go...review_web.pdf ?

[ChimpMaster]

Yep seen that and trust his judgement.

But I've also seen people post emails from HMRC after Webberg's post that saying HMRC will be making an announcement regarding the 30/9 loan reporting.

There's a link somewhere if you search - HMRC have said that you don't need to report by Oct 1st IF you are in settlement negotiations with them already.

[lowpaidworker]

Seen lots of confusion or suffered lots of confusion?

I'd suggest this part of webberg's original post on this thread could not have made it clearer:

Yep seen that and trust his judgement.

But I've also seen people post emails from HMRC after Webberg's post that saying HMRC will be making an announcement regarding the 30/9 loan reporting.

[Paralytic]

Hi

I've seen a lot of confusion around the 30/9 Loan reporting. I've seen a comment around emails from HMRC about waiting on communication from them.

I've tried emailing and nothing back.

So simple question - is the deadline still valid.

PS I think it still is ?

Seen lots of confusion or suffered lots of confusion?

I'd suggest this part of webberg's original post on this thread could not have made it clearer:

The end September deadline for disclosure of loans, remains YOUR legal obligation.

In the absence of any change in legislation - which requires Parliamentary approval, not just HMRC statements - the requirement to disclose remains.

Unless there is some announcement that can be relied upon, disclosure should be made.

The legal requirement to disclose loan values in tax returns also remains. We know that views among the adviser community differ as to what form and format that disclosure should take, but so far as I can see, no adviser is recommending that disclosure is not made.

Unless there is some announcement that can be relied upon, disclosure should be made.

[lowpaidworker]

Hi

I've seen a lot of confusion around the 30/9 Loan reporting. I've seen a comment around emails from HMRC about waiting on communication from them.

I've tried emailing and nothing back.

So simple question - is the deadline still valid.

PS I think it still is ?