Registering to Settle Question

[starstruck]

My thoughts are I should just ignore and seek further advice from an advisor.

You make no mention of the Loan Charge in your posts. Are you aware of this? If you don't settle then the loan charge will likely apply to your loans (or at least HMRC will likely claim this).

[keeno65]

You make no mention of the Loan Charge in your posts. Are you aware of this? .

Honestly, hopefully without somebody telling me I am stupid again, not exactly no.
It mentions changes to the loan charge in the letter, but I don't know exactly what the Loan Charge is?
It is charged on outstanding loans, but what is charged? a percentage? interest?
A clear to understand explanation would help, thank you.

[starstruck]

Honestly, hopefully without somebody telling me I am stupid again, not exactly no.
It mentions changes to the loan charge in the letter, but I don't know exactly what the Loan Charge is?
It is charged on outstanding loans, but what is charged? a percentage? interest?
A clear to understand explanation would help, thank you.

You really need some urgent advice. Get reading the loan charge threads on this forum as a matter of urgency and start calling some tax advisors! Settlement is likely to be much cheaper than the Loan Charge which will likely apply to your loans and you literally have only weeks to sort this out (2018/19 tax return deadline has been extended but I think only until September or thereabouts). You probably need to submit (amend?) your 2018/19 return with the loans on it and then they will be added to you taxable income in 2018/19 but there is so much to explain I don't even know where to start. Maybe watch the video on the home page here: 2019 Loan Charge Action Group (LCAG) - Loan Charge Action Group

[lowpaidworker]

Honestly, hopefully without somebody telling me I am stupid again, not exactly no.
It mentions changes to the loan charge in the letter, but I don't know exactly what the Loan Charge is?
It is charged on outstanding loans, but what is charged? a percentage? interest?
A clear to understand explanation would help, thank you.

In simple terms they take the loan balance and add this to your 2018/2019 tax return and restate it. So if you earnt 50k and had loans of 150k from previous years they go back and recalculate your tax based on 200k and send you a bill.

To complicate things a bit HMRC have offered to spread the outstanding loan balance over 3 tax years. So using the above this would mean for 2018/19 your earnings would be re-stated at 100k. (50k earnings plus 50k loan). Then for the next two tax years they add 50k to whatever you earnt and send you a tax bill.

Its worth reading through the link above mind you to get your own understanding as I am no tax advisor but just in the same messy boat.