Loan charge review - Government response is here

[DealorNoDeal]

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

I think you'd only have a strong case for full disclosure if the DOTAS number was on your tax returns.

[Iter]

I think you'd only have a strong case for full disclosure if the DOTAS number was on your tax returns.

If you were told at the time SA was not req for say 11/12, then a few years later HMRC req you to do a SA for a previous year containing details of loans, would that also constitute full disclosure.... ?

[ChimpMaster]

I think you'd only have a strong case for full disclosure if the DOTAS number was on your tax returns.

Assuming the scheme was DOTAS registered.

Many people were told that there was no need for the scheme to be registered, so they might have declared loans for BIK purposes but without a DOTAS number. So as usual HMRC are being ambiguous and aiming to catch out a lot of unsuspecting victims of their underhand psychological tactics.

[DealorNoDeal]

If you were told at the time SA was not req for say 11/12, then a few years later HMRC req you to do a SA for a previous year containing details of loans, would that also constitute full disclosure.... ?

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.

[webberg]

If you were told at the time SA was not req .... would that also constitute full disclosure.... ?

First, you were never told by HMRC that an SA was not required.

The usual letter from HMRC exempting you for your legal obligation to make a SATR is caveated by asking you to ensure that you have no other disclosable income to report or that there has been no change of circumstances.

Second, not making any disclosure, inside or outside the return cannot be a "full" disclosure.

I'm sorry, but no.

[bugle33]

Radio 2

Did anyone hear the loan charge thing Jeremy Vine did on radio 2 last week? I couldn't listen properly but he had two tax experts on there, one of them was "worried" that people who didn't have to file a tax return would not get a refund as HMRC would know exactly who was working for who and HMRC did nothing to warn them and did nothing about it - what a surprise.

The experts also said that according to the government inquiry full disclosure on a tax return was NOT required the wording was along the lines of best efforts iirc. Might be worth a listen if you can find it.

[xtrail]

Pre-Loan Charge Settiement

Apologies if this has been answered elsewhere.

I agreed on a settlement plan for 2006 - 2009 years (1 open year) back in October 2019 however, HMRC wrote to me regarding the review taking place so never started making payments.

Since then I've just received a letter from HMRC stating new loan charge rules.

HMRC state Quote
"If you are paying my instalments you should continue to make the payments. If you believe that you have paid all you own under the new loan charge rules before your instalment plan finishes, please contact us on nnnnn before stopping any payments.

So a little ambiguous and unclear whether I will be asked to start paying. Given that most of the years will be exempt anyone else in this position or had advice or been asked to start paying.

[DealorNoDeal]

Apologies if this has been answered elsewhere.

I agreed on a settlement plan for 2006 - 2009 years (1 open year) back in October 2019 however, HMRC wrote to me regarding the review taking place so never started making payments.

Since then I've just received a letter from HMRC stating new loan charge rules.

HMRC state Quote
"If you are paying my instalments you should continue to make the payments. If you believe that you have paid all you own under the new loan charge rules before your instalment plan finishes, please contact us on nnnnn before stopping any payments.

So a little ambiguous and unclear whether I will be asked to start paying. Given that most of the years will be exempt anyone else in this position or had advice or been asked to start paying.

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.

[BrilloPad]

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.

The always send misleading letters.....

[webberg]

Apologies if this has been answered elsewhere.

I agreed on a settlement plan for 2006 - 2009 years (1 open year) back in October 2019 however, HMRC wrote to me regarding the review taking place so never started making payments.

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.