Loan charge review - Government response is here

[DealorNoDeal]

My loans are 2006/7 and a small amount 2007/8. I received one letter that implied they are both closed years and included an interest amount that I could choose to pay voluntarily Only the tax should be by voluntary restitution. Not the interest., but when my settlement paperwork came through (with the threat of LC if it was not signed and returned immediately, so I finally gave in and did this) they have applied interest to the amount owed... so am wondering if that means the years are actually open, or if they were just taking liberties! Should I have to pay interest if the years are closed? No

Did HMRC ever write to you, after you submitted your tax returns, querying them? If not, the years would be closed.

If you're not sure, you could always ask HMRC to provide evidence (copies of letters) that the years are open.

[Blaize]

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.

Thanks, I think this is the position I am in, as I received a letter to say they were putting it on hold, awaiting the outcome of the review.

My loans are 2006/7 and a small amount 2007/8. I received one letter that implied they are both closed years and included an interest amount that I could choose to pay voluntarily, but when my settlement paperwork came through (with the threat of LC if it was not signed and returned immediately, so I finally gave in and did this) they have applied interest to the amount owed... so am wondering if that means the years are actually open, or if they were just taking liberties! Should I have to pay interest if the years are closed?

[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.

[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.

[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.

[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.

[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.

[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]

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.

[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