Settlement deadline 30th September 2020

[Carla58]

[QUOTE=webberg;2807728]See above.

Also if I haven't worked in the UK for 3 years paying the loan charge seems to look like a good option to me as I assume I wouldn't hit the higher tax rate each year but I am assuming it is an either or solution with the loan charge vs settlement, HMRC want as much as they can get and will want the highest amount [for the 100th time - the loan charge is NOT AN OPTION TO SETTLEMENT - paying the loan charge DOES NOT settle open enquiries]
QUOTE]

Hi Webberg

OK So its not a settlement but if I haven't agreed a settlement with them should I try and pay the first part in whole somehow on 30th September so not to get a penalty for filing late and them adding interest from February?
And if I do that does that money go towards a possible settlement in the future or will I have to do all 3 years that way and settle sometime in 2022 with what they deem is outstanding or would you get a refund if you had overpaid vs the settlement offer?

Sorry for bad punctuation was late after a 13 hour long conference call and I didn't excel in English or Maths just Science

Thanks

Carla

PS I am on queue to them now hopefully get through soon

[DavidD]

£150 a month

Or pay the rest over 12.5 years ?

If later - Jesus’s !




Sent from my iPhone using Contractor UK Forum

Yes, in excess of 150 months... I could probably have paid in 120 months but I have nearly £20k of Forward Interest and £8k of past interest added on....

[webberg]

[QUOTE=Carla58;2807958]

Hi Webberg

OK So its not a settlement but if I haven't agreed a settlement with them should I try and pay the first part in whole somehow on 30th September so not to get a penalty for filing late and them adding interest from February?
And if I do that does that money go towards a possible settlement in the future or will I have to do all 3 years that way and settle sometime in 2022 with what they deem is outstanding or would you get a refund if you had overpaid vs the settlement offer?

Sorry for bad punctuation was late after a 13 hour long conference call and I didn't excel in English or Maths just Science

Thanks

Carla

PS I am on queue to them now hopefully get through soon

If you have not settled HMRC will expect you to pay the loan charge. Unless you have a defence, then failing to pay will attract interest.

You can open discussions into the August 2020 settlement terms immediately and the payments made will count towards that eventual settlement.

If you overpay the loan charge it is NON REFUNDABLE.

Elect to spread the amount over three years which will avoid the latter.

(Apologies for the punctuation remark - totally unfair - we've been doing some long days and my patience was a little thin).

[Nebulis]

Late to the game

Hi. I was involved in a loan arrangement from 10-Dec-2010 that had the company assured me had been reviewed by a QA and reviewed by a Tax Barrister at KPMG.

I since moved abroad for a few years and have been back since late 2016. I have never been contacted by HMRC regarding any loans (prior to 10-Dec 2010 I used the same company under a different arrangement where the loans were disclosed in the Self Assessment and P11D).

I have lost sleep in recent days as have left it late assuming I could adjust my 2018/19 Self Assessment if needed and pay the outstanding tax (spread over 3 years). I'm not 100% sure as I haven't been contacted by HMRC if I really need to do anything, or whether it's best to include the loans on 2018/19 Self Assessment for peace of mind.

[demby]

I also had the 10% allowance for expenses, but had to press for a correction to their calculations where they included my PAYE nett salary in the loan amount. Once corrected, it's now reduced the settlement amount by £17k (from £87k down to £70k)! Even now, they've made a further mistake in transcribing tax due amounts from their own spreadsheets to the Choices Letter that I have to sign! (Several hundred pounds error to my detriment).

Regarding expenses, I see that many on here have stated they were never given the 10% expenses option. I believe HMRC are legally bound to treat all in a fair and equitable manner (sic). I think it's too late for anyone to now fight for the 10% given the looming end date, but post settlement I wonder if those impacted (never offered the 10% option) may have an actionable complaint legally. (Having to settle to meet the end of Sept date may be construed as being under duress). It may well depend on whether numbers are sufficient to garner publicity. Only a thought...

Make sure you get 10% against your entire income for the year not just the Loan Amount

[Carla58]

Hi There,

I got a phone call finally on September 23rd saying they were sending me a letter for settlement terms.

I pointed out I am not working in the UK and due to a pandemic not letting me enter the UK without quarantining for 14 days getting access to mail is difficult and as discussed please correspond with email (forms filled in for this). the person then said the email would come out instead so I would be able to see before 30th Sept.

He then explained to me that they thought my finances made it unlikely for me to be able to pay (that's because I earn Euro's in another country) and said I should try and raise equity on my house or they could arrange for the money to be taken from the sale of the house when I die.

I mentioned I was hoping to stay alive for a while and would the interest accrue the longer I lived I also mentioned that at the moment I couldn't change a light bulb in my house let alone discuss the idea of borrowing more money from my eager to lend mortgage company.

He then said he was just ringing people to say the letters were coming and that he didn't have any detail of the calculation or my case (so still not actually spoke to someone any use)

Any how no emails or post (I had someone visit house daily) by 30th so used the bulk of the lump sum I had offered to pay the loan charge

trying to source more for the payment in January I guess

Carla