Forced into Loan Charge

**GhostofTarbera** · 8 August 2020, 15:47

If I moved to Asia several years ago, I would sleep well and forget all about it

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**demby** · 10 August 2020, 13:40

Originally posted by wattsy View Post

Can you use PA on the loan charge?

no other income loan of 50k

so minus PA 12k

38k taxable

Right?

Yes you can

This is where it's a completely wrong as it's all taxed on a single year with just one PA amount. Loans of 2 years should have a PA for each year.

**Iter** · 10 August 2020, 14:11

Originally posted by demby View Post

Yes you can

This is where it's a completely wrong as it's all taxed on a single year with just one PA amount. Loans of 2 years should have a PA for each year.

Total loans can be spread over 3 tax years, therefore making use of 3 PA’s

**webberg** · 10 August 2020, 14:15

Interesting.

If you are not UK resident then usually a PA is not available.

**sdchater** · 12 August 2020, 08:09

Originally posted by GhostofTarbera View Post

If I moved to Asia several years ago, I would sleep well and forget all about it

Sent from my iPhone using Contractor UK Forum

Another pointless response. Please answer the valid question being asked or don't respond.

**dammit chloe** · 12 August 2020, 14:06

Originally posted by sdchater View Post

Another pointless response. Please answer the valid question being asked or don't respond.

Please go and pay for professional tax advice or deal with it.

**GoneSurfing** · 13 August 2020, 13:16

Originally posted by webberg View Post

Interesting.

If you are not UK resident then usually a PA is not available.

Tax on your UK income if you live abroad: Personal Allowance - GOV.UK

Tax on your UK income if you live abroad

You’ll get a Personal Allowance of tax-free UK income each year if any of the following apply:

you hold a British passport
you’re a citizen of a European Economic Area (EEA) country
you’ve worked for the UK government at any time during that tax year

You might also get it if it’s included in the double-taxation agreement between the UK and the country you live in.

**Ozcontractor** · 25 August 2020, 22:28

So just to confirm, is it correct to assume that PA is available for 3 years if spreading the loan charge over 3 years worth of self assessment returns?

**webberg** · 26 August 2020, 08:09

Originally posted by Ozcontractor View Post

So just to confirm, is it correct to assume that PA is available for 3 years if spreading the loan charge over 3 years worth of self assessment returns?

Just be aware that paying the loan charge over one year or three does not settle the final liability.

You still have to reach some sort of agreement with HMRC.

Forced into Loan Charge