Loan charge review - Government response is here

[michalini]

I am going to call HMRC tomorrow, but I was wondering whether anyone knows answer: I tried to settle twice last year - HMRC sent me contract to sign (next step would be to receive information on how to pay), but twice they sent me a letter back saying they were too busy and I need to send a new contract. 3rd contract was in November and I didn't hear anything since then, but recently I received loan charge review infromational letter. I am wondering whether they can apply LC even though I was already trying to settle? Loans were for 2014/2015/2016 years.

[xtrail]

If the settlement was formally agreed (signed etc) then you'll still have to pay the open year. They should rework your payment plan to exclude the closed years. Maybe they'll get around to doing this eventually.

I imagine HMRC are a bit all over the place at the moment, so it doesn't surprise me that they're sending out misleading letters.

Thanks yes this would be my desired outcome rather than having to pay anything and then reclaim.

[xtrail]

Did you sign the contract?

Did you agree to a payment plan?

If the answer to both is "yes", then by not making payments as agreed, means that you are in breach of the agreement.

The review put on hold all settlements that had not been agreed. It did NOT impact those that had been agreed and where payments were falling due.

Go and get advice. Ask your accountant/agent.

Unfortunately yes to both although I never received when to start paying etc.. I estimate HMRC will owe me money even with the open year. I'll contact my accountant and see if he is willing to advise.
Thanks for advice

[DealorNoDeal]

Thanks yes this would be my desired outcome rather than having to pay anything and then reclaim.

You could try calling HMRC but I don't know whether you'd get any sense out of them at the moment.

[BRSDJA]

Ask HMRC.

Other than cases which are pretty clear cut (eg. DOTAS number on SATR), I would expect HMRC to reject claims of full disclosure.

If you think you have a good argument then you'll probably have to take it to a Tribunal.

I think an alternative to disclosing on SATR would be to have used form AAG4. I think this would also amount to full disclosure. Do you agree?

[DealorNoDeal]

I think an alternative to disclosing on SATR would be to have used form AAG4. I think this would also amount to full disclosure. Do you agree?

I had to look up what that form is but yes, I agree, if you submitted one of these each year and on time, it should count as full disclosure.

I would have expected the filing of this form to prompt HMRC to issue a protective enquiry but maybe that didn't happen in some cases.

[webberg]

Unfortunately yes to both although I never received when to start paying etc.. I estimate HMRC will owe me money even with the open year. I'll contact my accountant and see if he is willing to advise.
Thanks for advice

Yes you did get a notice of when to start paying, it's part of the terms of the contract you signed.

Contact your accountant.

[BRSDJA]

Voluntary restitution.

I was fortunate to have settled for tax year 12/13 via voluntary restitution for income tax, however, NI was settled with interest as it fell just inside of the 6-year window.

I realise now that if I had delayed a few months, or been further down the queue then NI would also have been via voluntary restitution.

Given this was luck of the draw, and if I had been slower in coming forward, or HMRC had been slower in processing then presumably NI would have been handled differently, do you think there is a case for asking for a NI refund?

Or in other words, is there any statutory duty of HMRC to treat all taxpayers equally, so my treatment and the possible refund should not be adversely impacted by the speed in signing off the settlement agreement.

My understanding is that for tax year 12/13, the NI 6 year window would have closed in July 19.

[DealorNoDeal]

I was fortunate to have settled for tax year 12/13 via voluntary restitution for income tax, however, NI was settled with interest as it fell just inside of the 6-year window.

I realise now that if I had delayed a few months, or been further down the queue then NI would also have been via voluntary restitution.

Given this was luck of the draw, and if I had been slower in coming forward, or HMRC had been slower in processing then presumably NI would have been handled differently, do you think there is a case for asking for a NI refund?

Or in other words, is there any statutory duty of HMRC to treat all taxpayers equally, so my treatment and the possible refund should not be adversely impacted by the speed in signing off the settlement agreement.

My understanding is that for tax year 12/13, the NI 6 year window would have closed in July 19.

Presumably class 4 self-employed nics?

Unfortunately, I doubt you'd get much joy asking for a refund.

[xtrail]

Yes you did get a notice of when to start paying, it's part of the terms of the contract you signed.

Contact your accountant.

I spoke to HMRC who confirmed that I had signed the settlement however, HMRC had not accepted the settlement as they decided to put this on hold and wait for review to be completed. HMRC have told me as the settlement has not been accepted by themselves do nothing until it is now accepted in law. All by years were pre 2010
Hope this helps someone else in similar position.