Self Assessment Tax Return 2018/19 and Loan Charge

[dammit chloe]

Yes I Joined the LCAG, but my guest forum privaledges have been taken off me. Before I got the dreaded two brown envolopes

As above that isn't really joining. There are only a couple of places to ask general questions with guest membership as time limited. There are options that may help you, especially the JR, but I can't discuss them publicly.

[lowpaidworker]

Direct Employer Loans

Has anyone got confirmation from HMRC that loans made directly by your employer to you do not need to declared on your SA return. So basically the loan is not 3rd party or made by a trust.

So I have been told they dont need declaring, although I want to hear it from the horses mouth. I have asked HMRC for confirmation but nothing. That was over 4 months ago and Ive chased it twice.

[Iliketax]

Has anyone got confirmation from HMRC that loans made directly by your employer to you do not need to declared on your SA return. So basically the loan is not 3rd party or made by a trust.

So I have been told they dont need declaring, although I want to hear it from the horses mouth. I have asked HMRC for confirmation but nothing. That was over 4 months ago and Ive chased it twice.

Unfortunately it is not as easy as saying a loan from your employer does not need to be reported. Some people came up with contrived schemes whereby the employer lends the employee money and then moves the loan receivable to a trust. The legislation calls these loans quasi-loans and, if yours is one, needs to be reported - you might want to google: quasi-loans disguised remuneration.

Some people also came up with even more contrived ideas that involved gold bullion and other strange stuff that ended up with the employee getting something that very much looks and feels like a loan. These would need to be reported too - you might want to google: GAAR advisory panel disguised remuneration.

[Lance]

Has anyone got confirmation from HMRC that loans made directly by your employer to you do not need to declared on your SA return. So basically the loan is not 3rd party or made by a trust.

So I have been told they dont need declaring, although I want to hear it from the horses mouth. I have asked HMRC for confirmation but nothing. That was over 4 months ago and Ive chased it twice.

did taking the loan allow you to have money and pay less tax?

If the answer is yes then HMRC are are unlikely to think you shouldn't declare it.
The fact you are asking suggests that you know it's a bit dodgy. You wouldn't declare a loan from a bank you use to buy a car so why is there any doubt?

[lowpaidworker]

Unfortunately it is not as easy as saying a loan from your employer does not need to be reported. Some people came up with contrived schemes whereby the employer lends the employee money and then moves the loan receivable to a trust. The legislation calls these loans quasi-loans and, if yours is one, needs to be reported - you might want to google: quasi-loans disguised remuneration.

Some people also came up with even more contrived ideas that involved gold bullion and other strange stuff that ended up with the employee getting something that very much looks and feels like a loan. These would need to be reported too - you might want to google: GAAR advisory panel disguised remuneration.

Thanks I did just that.

However my loans are definately still with my old employer. I still get sent loan statements from my old employer with interest to date charges even though I havent worked for them for more than 4 years.

[BrilloPad]

Has anyone got confirmation from HMRC that loans made directly by your employer to you do not need to declared on your SA return. So basically the loan is not 3rd party or made by a trust.

So I have been told they dont need declaring, although I want to hear it from the horses mouth. I have asked HMRC for confirmation but nothing. That was over 4 months ago and Ive chased it twice.

What are the repayment terms?

[lowpaidworker]

did taking the loan allow you to have money and pay less tax?

If the answer is yes then HMRC are are unlikely to think you shouldn't declare it.
The fact you are asking suggests that you know it's a bit dodgy. You wouldn't declare a loan from a bank you use to buy a car so why is there any doubt?

Again I am aware of that. I made a declaration last September for all the loan amounts. Am sure HMRC view these as similar to a trust loan.

However I was told that only 3rd party loans are captured by the Loan Charge. I will call HMRC before completing my SA anyway.

[lowpaidworker]

What are the repayment terms?

I think you know the answer.

However repayment terms are my pension pot. If I make it that far.

[Red1]

Yes we have seen this.

If you have settled the tax via a formal contract (you will know if you have signed one) or by withdrawing appeals against assessments (essentially agreeing HMRC's argument), then you are exempt from disclosing the loans in the 2018/19 SATR.

If you have yet to reach the stage of a formal, signed, agreement, then you should make a declaration on the 2018/19 SATR.

OK so I have missed the boat on declaring and accounting for your loans online form, as it was meant to be done in September 2019? So I declare everything on the 2018/2019 self assessment. As well as anything I have done in the 2019/2020 tax year??

[jrock]

You still need to disclose.

Thanks for the update. I have been advised that I only need to submit a SATR if HMRC have specifically requested it.

From my knowledge I havent received a specific request to submit a SATR.

If I dont disclose can I just leave it do it at a later date I.e. sept 30th if its deemed I should have?

All very confusing