Loan charge review - Government response is here

[NotSoCompliant]

I believe that HMRC guidance in the LC review stipulates that a voluntary restitution payment can be identified where no interest has been charged as part of settlement (ie open year would have interest changed as part of settlement but closed year would not have had interest charged as part of settlement and was considered voluntary restitution)

Here is the extact paragraph from HMRC guidance
“ Check your settlement paperwork. If you have made voluntary restitution payments, these will usually be identified on the settlement agreement as amounts where no interest has been charged.”

[RickG]

For those in the situation like myself who have already settled with HMRC in order to prevent the loan charge arising.

I have just spoken to my tax office regarding clarification on a refund for my pre Dec 2010 loan amounts.

They are under the impression that I did not voluntarily pay ! Even though I paid purely to stop the loan charge arising based on an HMRC letter sent outlining the differing amounts if I paid early or waited for the loan charge to hit.

Hence they do not consider I will receive any refund.

They say the years were under review and the settlement was not voluntary restitution !

It seems what is clear to me is being interpreted differently by HMRC.

Disguised remuneration: guidance following the outcome of the independent loan charge review - GOV.UK

The review only says to refund unprotected years pre-2010, and unprotected years pre-2016 where usage of scheme was fully disclosed.

So if you had an open enquiry, these would not be unprotected years.

[lowpaidworker]

The review only says to refund unprotected years pre-2010, and unprotected years pre-2016 where usage of scheme was fully disclosed.

So if you had an open enquiry, these would not be unprotected years.

so any payment made under an APN does not get a refund either even if its 2008/09.

[NeedTheSunshine]

so any payment made under an APN does not get a refund either even if its 2008/09.

That is correct. To have received an APN you would have had to have an open enquiry.

[dmuk]

Sorry if this has been asked and answered. I am playing catch up on threads since the 20 Dec Independent Review announcement.

Open years are still up for grabs by HMRC. However what 'amount' is up for grabs given the independent review guidelines?

For example - all loan amounts disclosed:
2008/09 is closed
2009/10 is closed
2010/11 is open
2011/12 is closed

I operate the same loan during this period (2008 to 2012). The loan grows from GBP1k to GBP100k during the period.

Will HMRC pursue the entire 2010/11 disclosed figure?
Or only December 2010 to April 2011?
Or another figure?

[DealorNoDeal]

Sorry if this has been asked and answered. I am playing catch up on threads since the 20 Dec Independent Review announcement.

Open years are still up for grabs by HMRC. However what 'amount' is up for grabs given the independent review guidelines?

For example - all loan amounts disclosed:
2008/09 is closed Exempt from LC
2009/10 is closed Exempt from LC
2010/11 is open Apr-Dec 2010 exempt from LC; Dec 2010 - Apr 2011 subject to LC
2011/12 is closed Subject to LC, unless you fully disclosed on your tax return to HMRC's satisfaction

I operate the same loan during this period (2008 to 2012). The loan grows from GBP1k to GBP100k during the period.

Will HMRC pursue the entire 2010/11 disclosed figure?
Or only December 2010 to April 2011?
Or another figure?

See above.

[BankingContract0r]

Revised payment amount?

Can I get the views of you good folk on this situation please:

A. 2012-13 – Closed
B. 2013-14 – Closed
C. 2014-15 – Open
D. 2015-16 – Closed

Voluntary settlement made for amounts A + B + C + D = amount E, spread in installments. Let's call that amount F. Started about 3 months prior to the Government response.

I understand that I have to pay C only (at this stage) and should be discussing the balance amount of C as installments with HMRC. Is my understanding correct?

I also understood that HMRC would be writing to everyone telling them of the what the review has meant and what the individual liability is. Except I've received a letter reminding me of the total settlement amount E and to continue to make payments of F. No mention of LC review etc?!

I've not yet spoken to HMRC on this but would like to ensure I know the facts before I do.

Any help much appreciated!

[DealorNoDeal]

Can I get the views of you good folk on this situation please:

A. 2012-13 – Closed
B. 2013-14 – Closed
C. 2014-15 – Open
D. 2015-16 – Closed

Voluntary settlement made for amounts A + B + C + D = amount E, spread in installments. Let's call that amount F. Started about 3 months prior to the Government response.

I understand that I have to pay C only (at this stage) and should be discussing the balance amount of C as installments with HMRC. Is my understanding correct?

I also understood that HMRC would be writing to everyone telling them of the what the review has meant and what the individual liability is. Except I've received a letter reminding me of the total settlement amount E and to continue to make payments of F. No mention of LC review etc?!

I've not yet spoken to HMRC on this but would like to ensure I know the facts before I do.

Any help much appreciated!

The review would only benefit you for A, B & D* if you fully disclosed the loans in those years.

HMRC still have time to open D.

[BankingContract0r]

The review would only benefit you for A, B & D* if you fully disclosed the loans in those years.

HMRC still have time to open D.

The schemes were DOTAS registered - is that disclosure enough or do you mean having to disclose to HMRC yourself/ via self assessment?

Sorry if these are dumb questions

[NeedTheSunshine]

The schemes were DOTAS registered - is that disclosure enough or do you mean having to disclose to HMRC yourself/ via self assessment?

Sorry if these are dumb questions

You would have had to make full disclosure on your Self Assessment