Loan charge - HMRC update

[Confusedetc]

I'm not sure that just declaring the loans on the SATRs will get this sorted.

Unless you settle, you may be subject to the Loan Charge. I'm guessing that's why HMRC are telling you that you need to provide a "loan balance" on the 2018/19 SATR. This is the tax year in which the loan charge is due.

I honestly wouldn't recommend that you try and do this yourself.

Thanks for the reply.
In the letters I got in Dec it said they suspect me of receiving other income via loans and to fill in the SATR for the years given (15-16 & 16-17) and to pay the tax owed.
When I called them they said the same thing (and this would sort it and then if I need to pay over time I could etc), and to also do 18-19, but this was before I received the letter yesterday which said the loan balance for 18-19.

What is the difference to settle ?

When you say you wouldn’t recommend I do this myself, do you mean complete the forms myself ?

[Confusedetc]

I have just reread the below and realised this isn't as simple as I thought and yes I do need to get advice I've realised.
Disguised remuneration: guidance following the outcome of the independent loan charge review - GOV.UK

I am going to call HMRC today to discuss further. (I think now the person I spoke to previously was just in the tax return dept and didn't have a clue about all the loan stuff)

Their help line number (03000 537923) whenever I call just goes dead or doesn't go through to anybody when it does actually ring which is annoying

Reading the link info and the loan being split over the next 3 years if need be I am now going to be looking at being taxed at a higher tax rate which is going to ruin me basically.
Feeling more sick about the situation than I already was.

[DealorNoDeal]

Thanks for the reply.
In the letters I got in Dec it said they suspect me of receiving other income via loans and to fill in the SATR for the years given (15-16 & 16-17) and to pay the tax owed.
When I called them they said the same thing (and this would sort it and then if I need to pay over time I could etc), and to also do 18-19, but this was before I received the letter yesterday which said the loan balance for 18-19.

What is the difference to settle ?

When you say you wouldn’t recommend I do this myself, do you mean complete the forms myself ?

If you fill in a SATR for 15-16 now, declare the loans as income, and pay the tax, you will have paid late. The tax for 15-16 should have been paid back in 2016. Late payment incurs interest. When you settle a year, you pay everything that is owed ie. the tax + interest.

Now, it may be that HMRC are happy for you to do it through the SATR. Perhaps they'll just send you a seperate bill for the interest.

The Loan Charge further complicates things. The fact that they are asking you to put the total outstanding loan balance on your 18-19 SATR means they are treating you as being subject to the charge. Strictly speaking, the only way to avoid the charge, is to settle in full (which would also have to include the loans for 17-18).

I'm not saying you can't do this yourself but it could get messy.

[AjayG]

Loan Charge no longer applicable people

Hi All

Apologies if this has been covered somewhere already,

Is anyone else in the position where the schemes they were in fall before the new December 2010 date for being in scope for the Loan Charge but was issued with and paid an APN in advance? (Accelerated Payment Notice)

Will we be able to claim back those funds?

Amy advice or pointers on info already out there would be welcome!

[DealorNoDeal]

Hi All

Apologies if this has been covered somewhere already,

Is anyone else in the position where the schemes they were in fall before the new December 2010 date for being in scope for the Loan Charge but was issued with and paid an APN in advance? (Accelerated Payment Notice)

Will we be able to claim back those funds?

Amy advice or pointers on info already out there would be welcome!

Unfortunately not.

[AjayG]

Unfortunately not.

Do you know why?

[NeedTheSunshine]

Do you know why?

If you were issued with an APN then there was an open enquiry for that tax year. You need to settle that tax year or litigate. I'm sure the new pre Dec 2010 team will be in touch soon.

[AjayG]

Thank you both

[DealorNoDeal]

Do you know why?

This FAQ might help.

https://www.contractoruk.com/forums/...010-loans.html

[Tengen]

Hi everyone

I just got home, found a "changes to loan charge" letter informing me to submit a return disclosing it and pay loan charge by the 31st January, um, tomorrow. I dont even do self assessments any more, they moved me back to PAYE a few years ago.

I settled with HMRC in 2016. Tax+interest and as far as i was concerned, and by look of settlement letter, everything was finished, case closed. From what i can see from a quick search tonight, this letter got sent out to other people who settled and they were just fishing for anything new? Or will i have more to pay on top of the rather large lump of money i gave them?

Ive emailed, and will phone tomorrow but trying to get the feel of whether or not i need to be worried.