Settlement -vs- loan charge

[eek]

Can someone who knows clarify if I entered a loan agreement before 9th Dec 2010, but continued to get paid under that agreement after this date, am I liable to the LC on any of the loans, only those after 9th Dec or all of the loans under that agreement?

SAM's recommendation says "I therefore conclude that the Loan Charge should not apply to loans entered into by either individuals or employers before 9th December 2010" - To me that could mean that I am not liable to pay LC on loans received on and after 9th Dec if the agreement entered before

However HMRC site says "If you were employed when you received a loan, the loan charge applies to outstanding loans made between 9 December 2010 and 5 April 2019." - This to me says I am liable to that portion of the payments made to me on and after 9th Dec

Who is SAM? And why do you take their advice rather than HMRC's?

[starstruck]

Who is SAM?

Sir Amyas Morse

[lowpaidworker]

Who is SAM? And why do you take their advice rather than HMRC's?

OK lets not now all get political.

I think we all know that his statement meant tax year rather than when the loan agreement was signed. We all know who SAM is and his recomendations.

[Paralytic]

OK lets not now all get political.

I think we all know that his statement meant tax year rather than when the loan agreement was signed. We all know who SAM is and his recomendations.

I had no idea who SAM was.

[lowpaidworker]

I had no idea who SAM was.

becasue you are relatively new to this I assume but my comment was not aimed at you. You only have to have a smidgeon of knowledge to know SAM = Sir Amyas Morse and any Google search shows up his Loan Charge review

[luxCon]

Can someone who knows clarify if I entered a loan agreement before 9th Dec 2010, but continued to get paid under that agreement after this date, am I liable to the LC on any of the loans, only those after 9th Dec or all of the loans under that agreement?

SAM's recommendation says "I therefore conclude that the Loan Charge should not apply to loans entered into by either individuals or employers before 9th December 2010" - To me that could mean that I am not liable to pay LC on loans received on and after 9th Dec if the agreement entered before

However HMRC site says "If you were employed when you received a loan, the loan charge applies to outstanding loans made between 9 December 2010 and 5 April 2019." - This to me says I am liable to that portion of the payments made to me on and after 9th Dec

Does anyone who knows what they talking about provide an answer to the above please?

[eek]

OK lets not now all get political.

I think we all know that his statement meant tax year rather than when the loan agreement was signed. We all know who SAM is and his recomendations.

I'm sorry but acronyms on a public forum without context aren't any use for anyone which is why I asked the question. SAM could equally be a random tax firm (they've used most possible variations over the years).

[eek]

Does anyone who knows what they talking about provide an answer to the above please?

I suspect your option is to follow HMRC's instructions or put figures that HMRC will deem to be incorrect into your self assessment form and see how HMRC reacts.

Given however that HMRC could (and indeed often do) regard every individual payment as a separate loan, I would tend towards the view that any money received on or after 9 December 2010 needs to be included.

[webberg]

Can someone who knows clarify if I entered a loan agreement before 9th Dec 2010, but continued to get paid under that agreement after this date, am I liable to the LC on any of the loans, only those after 9th Dec or all of the loans under that agreement?

SAM's recommendation says "I therefore conclude that the Loan Charge should not apply to loans entered into by either individuals or employers before 9th December 2010" - To me that could mean that I am not liable to pay LC on loans received on and after 9th Dec if the agreement entered before

However HMRC site says "If you were employed when you received a loan, the loan charge applies to outstanding loans made between 9 December 2010 and 5 April 2019." - This to me says I am liable to that portion of the payments made to me on and after 9th Dec

The loan charge legislation works on when the "loan" was paid.

In practical terms, almost all loan agreements written and signed before 9th December 2010 were terminated very shortly after that date - or sometimes well after that date but backdated - and I cannot think of one of the 120 odd schemes I've researched which used the same agreement much after March 2011.

Further some loan agreements worked in a similar way to "master/servant" agreements. In other words the "master" agreement had all the terms and conditions and the "servant" agreement was prepared for each drawdown. Does that result in an agreement being pre 9/12/10 or is it the date of each servant agreement?

I have a view on that but I guarantee that HMRC does not and they will be keying everything off date money was paid.

[sludgesurfer]

FT loan charge article

I could transform that into a flow chart if completely necessary but I think it's clear enough for everyone.

The FT ran an article this morning which included a flowchart courtesy of WTT/BDO

The direct link is here:

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