Latest Settlement Offer

[lowpaidworker]

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.

I spoke to MP yesterday. Meeting went reasonable well. Was he open and honest. Not sure. However he said based on his discussion that the Treasury and HMRC for both IR35 and the Loan Charge are being very dogmatic and he said its fair to assume that they will not change their mind. However he said there is a lot of support for fairer voluntary settlement. Whilst I cannot see how paying a % of the tax dispute is going to work (as some have agreed settlement and have either payed or paying) its not to say that MPs could not force this approach through.


So whilst my own MP sympathizes he has said that you will need to pay back the tax. But and the big but but he is very keen to make sure that any settlement terms including TTP, IHT, Interest and Penalties are looked into and everyone is treated fairly. Whilst a little disappointed I would say if all my back interest was removed and forward interest calculated at a sensible rate based on the low base rate it would knock a significant chunk off my settlement figure. In the region of 15 to 20%. If then IHT claims were dropped and as part of the settlement HMRC agreed to close all my open years and a sensible TTP arrangement was put in place it would help me draw a line under this.

He has asked me to write to him and put some of this down and he will be pushing for some if not all these ideas to be agreed and adhered to. So whilst this percentage of settlement is definitely not dead and I like the idea and will add this there are lots of things MPs can do to being closure to this whole mess.

[Iter]

I spoke to MP yesterday. Meeting went reasonable well. Was he open and honest. Not sure. However he said based on his discussion that the Treasury and HMRC for both IR35 and the Loan Charge are being very dogmatic and he said its fair to assume that they will not change their mind. However he said there is a lot of support for fairer voluntary settlement. Whilst I cannot see how paying a % of the tax dispute is going to work (as some have agreed settlement and have either payed or paying) its not to say that MPs could not force this approach through.

Interesting that's Sir Mike Penning is not my MP but is one constituency along. I wish I had moved lived half a mile away. He is a great MP to have

So whilst my own MP sympathizes he has said that you will need to pay back the tax. But and the big but but he is very keen to make sure that any settlement terms including TTP, IHT, Interest and Penalties are looked into and everyone is treated fairly. Whilst a little disappointed I would say if all my back interest was removed and forward interest calculated at a sensible rate based on the low base rate it would knock a significant chunk off my settlement figure. In the region of 15 to 20%. If then IHT claims were dropped and as part of the settlement HMRC agreed to close all my open years and a sensible TTP arrangement was put in place it would help me draw a line under this.

He has asked me to write to him and put some of this down and he will be pushing for some if not all these ideas to be agreed and adhered to. So whilst this percentage of settlement is definitely not dead and I like the idea and will add this there are lots of things MPs can do to being closure to this whole mess.

They should also be aware that people already paid upto 20% of income in fees, whilst I know that’s separate to tax in HMRC pockets, I don’t think anyone will be getting that back. I think for the majority a 10-15 % settlement offering would be achievable for a lot of us and HMRC would see a faster flow of money coming thier way

[NeedTheSunshine]

They should also be aware that people already paid upto 20% of income in fees, whilst I know that’s separate to tax in HMRC pockets, I don’t think anyone will be getting that back. I think for the majority a 10-15 % settlement offering would be achievable for a lot of us and HMRC would see a faster flow of money coming thier way

I just can't see HMRC going for that. And what about all the people who have already settled?

[DealorNoDeal]

Very difficult if Government/HMRC are seen giving discounts. This applies to interest, as well as tax, because interest is a statutory thing.

They could give people much longer periods to pay though. Collecting it through the tax code might be one option.

[DavidD]

TTP Latest

So, I have my answer to what happens next (after offering a TTP amount that I know HMRC wont accept). Their letter states that "as you have asked to pay by instalments over a long period of time, we now need some more detailed information about your finances..."

Interestingly the information required covers my wife's income and also the value of our house (and outstanding mortgage) and car.

They are looking for a response by 21st August so, again, I cannot believe this will be settled by September.

[ukcommando]

Expenses Allowance HMRC Policy

Thank you Albert49. No harm in trying I suppose

I've only just seen the OP, so apologies for not adding input before. In my current settlement negotiations, the Compliance Officer has told me that where there isn't firm documented support of claimed expenses (I assume they mean documented and claimed from the client), then HMRC will allow the greater of either £2500 or 10% of the total taxable amount as an allowance against expenses. Feel free to quote that by the way.

BTW I had to ask her what the official HMRC policy was in order to get that. Like getting blood out of a stone with HMRC, but I don't reckon 10% is bad all things considered.

[Ozcontractor]

Settle vs paying LC

Hi everyone - I am new to this forum so apologies if its been posted elsewhere. I'm trying to understand what are the benefits of settling before 30 Sept vs paying the LC over 3 years? If I have no other UK income in my 18/19 year onwards, and a hypothetical loan balance of say $60k, surely paying the LC over 3 years is much more attractive? So in my 18/19 return, I would have $60k/3 as income, so $20k? Less the personal allowance for that year, to bring it down to $10k. Does this mean I only pay the tax on the $10k for the 18/19 year? Obviously key to this is I have no other UK income for the 18/19 year. Keen to hear some thoughts on pros vs cons. Many thanks

[webberg]

Hi everyone - I am new to this forum so apologies if its been posted elsewhere. I'm trying to understand what are the benefits of settling before 30 Sept vs paying the LC over 3 years? If I have no other UK income in my 18/19 year onwards, and a hypothetical loan balance of say $60k, surely paying the LC over 3 years is much more attractive? So in my 18/19 return, I would have $60k/3 as income, so $20k? Less the personal allowance for that year, to bring it down to $10k. Does this mean I only pay the tax on the $10k for the 18/19 year? Obviously key to this is I have no other UK income for the 18/19 year. Keen to hear some thoughts on pros vs cons. Many thanks

Except that paying the loan does not settle the outstanding years if you have open enquiries.

If you have no open enquiries, then you are correct (except you will not get PA).

If you have open enquiries, then you MUST agree the final position for those years.

[Ozcontractor]

Except that paying the loan does not settle the outstanding years if you have open enquiries.

If you have no open enquiries, then you are correct (except you will not get PA).

If you have open enquiries, then you MUST agree the final position for those years.

Thank you for your help. Can I ask how I can confirm whether I have an open enquiry or not? I received a settlement offer from HMRC but that was more because I emailed them a couple of years back to express interest in settling (when they offered this perhaps in 2018). So I now have a settlement offer but I don’t believe I have an open enquiry. Any thoughts?

[webberg]

Thank you for your help. Can I ask how I can confirm whether I have an open enquiry or not? I received a settlement offer from HMRC but that was more because I emailed them a couple of years back to express interest in settling (when they offered this perhaps in 2018). So I now have a settlement offer but I don’t believe I have an open enquiry. Any thoughts?

Check the settlement calculations.

If the tax calculations include interest, then HMRC think that the year has an open enquiry.