Latest Settlement Offer

[bubble99]

I may be wrong but I think you need to settle by then or you'll be liable for the Loan Charge. The 2018/19 self assessment return is due in October. If you haven't settled then you'd need to declare your loans on the return and pay the charge.

NB. the loan charge only applies if your loans were after December 2010.

you only need to declare the loans on your SA return if hey are inscope following the ruling.... so loans pre Dec 10th 2010 are out of scope. And ones after then are inscope but subject to conditions.

I think another reason for the Sep deadline is some of these litigation cases are going back for appeal later in the year (like Hoey) so probably they want to squeeze some more settlements out of us in the unlikely event they loose.

[webberg]

I think another reason for the Sep deadline is some of these litigation cases are going back for appeal later in the year (like Hoey) so probably they want to squeeze some more settlements out of us in the unlikely event they loose.

That's incorrect and also not related to the statutory obligations contained in the loan charge legislation.

HMRC's view is that the loan charge will apply to all unpaid loan balances arising from disguised remunerations schemes if those loans were drawn after 9th December 2010 and before 5th April 2019 subject to certain conditions for loans before 5th April 2016.

The deadline for making a 2018/19 SATR was extended to 30th September 2020.

HMRC claim - without being able to point at any supporting legislation - that if you settle the loan charge will not apply.

Therefore they want to have all settlements agreed before the end of September in order that anybody not agreed will be liable for a loan charge assessment.

Neither the loan charge legislation nor any legal clauses dealing with HMRC agreements actually give HMRC any power to forgive a taxpayer a legal obligation.

In short it's the latest fudge in a long line of debatable actions that HMRC has been guilty of ever since the loan charge first raised its ugly head.

It would be a mistake to think that there is any logic, statutory justification or grand plan behind the 30th September date.

[DealorNoDeal]

HMRC claim - without being able to point at any supporting legislation - that if you settle the loan charge will not apply.

Therefore they want to have all settlements agreed before the end of September in order that anybody not agreed will be liable for a loan charge assessment.

Neither the loan charge legislation nor any legal clauses dealing with HMRC agreements actually give HMRC any power to forgive a taxpayer a legal obligation.

In short it's the latest fudge in a long line of debatable actions that HMRC has been guilty of ever since the loan charge first raised its ugly head.

It would be a mistake to think that there is any logic, statutory justification or grand plan behind the 30th September date.

Just because you're paranoid doesn't mean HMRC aren't out to get you.

[helen7]

At what stage can you expect to be in front of a judge to explain that HMRC incompetency, inaction and neglect has resulted in this mess.

Actually, it is you believing that you could pretend your income was a tax free loan (that you magically never have to pay back) that resulted in this mess.

[DavidD]

Thoughts on Settlement Terms

So, I'm in the process of trying to settle, I have responded to HMRC with a proposal but I can only afford a payment plan that I don't believe they will currently accept (I also know several other people who are in exactly the same boat). I was originally offered a 7 year payment plan but after losing my job I need more time.

Anyone have any thoughts about what will happen in September? and the 'run up' to September - I suspect there are many thousands who want to settle but just cant on the current terms. Clearly, I cant pay the LC either.

[lowpaidworker]

So, I'm in the process of trying to settle, I have responded to HMRC with a proposal but I can only afford a payment plan that I don't believe they will currently accept (I also know several other people who are in exactly the same boat). I was originally offered a 7 year payment plan but after losing my job I need more time.

Anyone have any thoughts about what will happen in September? and the 'run up' to September - I suspect there are many thousands who want to settle but just cant on the current terms. Clearly, I cant pay the LC either.

David

Contact you local MP. Make sure he understands your plight and what you can and cannot afford. They have to be realistic. I have heard statements made by the treasury minister that no one will lose their home, no one will have to pay more than half their disposable income. Whilst its still not ideal I have heard many MPs are supporting the constituents caught up in this mess making sure you are treated fairly. I am meeting my MP tomorrow to discuss the same along with several others affected. We all got in touch via LCAG and it does help being in numbers.

Good luck. I am around a week or two behind you but in a similar position. I will need more like 10y + TTP which means I wont be far off retirement.

[DavidD]

Thanks for this, there is only one other person on LCAG's books in my constituency - I| have written to my MP on numerous occasions and intend to arrange an appointment to visit.

I can see an interesting problem for HMRC - the way I understand it is that they have essentially got some sort of binary decision in September - settlement is agreed or the Loan Charge applies. I understand that this is what they have told the government.

I know that this will not be finalised in September, HMRC advised my wife that they were inundated with the settlement process and are suffering a huge backlog. Many thousands in September will have made offers to settle that are not acceptable with HMRCs current terms.

I recognise this is somewhat wishful thinking... but is a deal possible?

Loan charge contractors switch focus to the courts, peers and HMRC

"With the payment deadline of September 30th now fast-approaching, others will be hoping that the tax department looks favourably on the idea of a voluntary settlement offer. "This would allow people to pay a percentage of the disputed tax, as full and final settlement,” said Sir Mike.“ [It would also] allow people to do this and get on with their lives, if they are able to make such a settlement. “Such an approach would prevent the many bankruptcies which we expect and would actually be likely to bring in more revenue that the current unreasonable and punitive approach.”

[DealorNoDeal]

I recognise this is somewhat wishful thinking... but is a deal possible?

Loan charge contractors switch focus to the courts, peers and HMRC

"With the payment deadline of September 30th now fast-approaching, others will be hoping that the tax department looks favourably on the idea of a voluntary settlement offer. "This would allow people to pay a percentage of the disputed tax, as full and final settlement,” said Sir Mike.“ [It would also] allow people to do this and get on with their lives, if they are able to make such a settlement. “Such an approach would prevent the many bankruptcies which we expect and would actually be likely to bring in more revenue that the current unreasonable and punitive approach.”

That would be the sensible and pragmatic approach but it would have to come from the Government.

[dammit chloe]

That would be the sensible and pragmatic approach but it would have to come from the Government.

Can't help thinking that the Govt have dug in so deep on this that they won't change.

Apparently, on the IR35 amendment, the PM personally intervened to ensure MPs didn't vote yes to it. I have no idea why they are so dogmatic on this stuff but they are.

[Nissan07]

Whilst I agree with the logic and common sense approach you mention, we all know that's unlikely to happen as it will open up a whole new can of worms from anybody who has already settled saying that's not fair those terms were not offered to them.