Does what HMRC are saying sound right?

[DealorNoDeal]

Person was in loan scheme 4 years 2015/16, 2016/17, 2017/18 and 2018/19.

They hadn't previously submitted any SATRs.

HMRC recently requested that they submit SATRs for 2015/16 and 2016/17.

HMRC have now told them that they should declare the 2015/16 & 2016/17 loans as income on these SATRs, and pay the additional tax.

And then, only 2017/18 & 2018/19 would be subject to the Loan Charge.

This might be aok but seems a bit strange.

[webberg]

Person was in loan scheme 4 years 2015/16, 2016/17, 2017/18 and 2018/19.

They hadn't previously submitted any SATRs.

HMRC recently requested that they submit SATRs for 2015/16 and 2016/17. So presumably the request was made in 2019 and the returns are due to be submitted before the end of this month?

HMRC have now told them that they should declare the 2015/16 & 2016/17 loans as income on these SATRs, and pay the additional tax. Well they would, wouldn't they? It's just their opinion.

And then, only 2017/18 & 2018/19 would be subject to the Loan Charge.

This might be aok but seems a bit strange.

No it makes little sense. Professional advice is needed.

[DealorNoDeal]

HMRC recently requested that they submit SATRs for 2015/16 and 2016/17. 1) So presumably the request was made in 2019 and the returns are due to be submitted before the end of this month?

HMRC have now told them that they should declare the 2015/16 & 2016/17 loans as income on these SATRs, and pay the additional tax. 2) Well they would, wouldn't they? It's just their opinion.

1) Yes, except they've been given until the end of Feb (I'm guessing they were given 3 months or so from the date of the letter)

2) Noted, but if they don't go along with this then 2015/16 & 2016/17 would be subject to the LC

It all just seems a bit arbitrary. Two of the years paid through self-assessment; the other two through the LC.

[webberg]

1) Yes, except they've been given until the end of Feb (I'm guessing they were given 3 months or so from the date of the letter)

2) Noted, but if they don't go along with this then 2015/16 & 2016/17 would be subject to the LC

It all just seems a bit arbitrary. Two of the years paid through self-assessment; the other two through the LC.

Was the scheme one which claimed self employment?

[DealorNoDeal]

Was the scheme one which claimed self employment?

No, they were a PAYE employee, which is presumably why no SATRs were filed at the time.

[BolshieBastard]

Person was in loan scheme 4 years 2015/16, 2016/17, 2017/18 and 2018/19.

They hadn't previously submitted any SATRs.

HMRC recently requested that they submit SATRs for 2015/16 and 2016/17.

HMRC have now told them that they should declare the 2015/16 & 2016/17 loans as income on these SATRs, and pay the additional tax.

And then, only 2017/18 & 2018/19 would be subject to the Loan Charge.

This might be aok but seems a bit strange.

Do as advised and get professional advice quickly. Do not trust HMRC. I followed their 'advice' once and then they reneged on their own 'advice.'