Settlement -vs- loan charge

[DealorNoDeal]

I'm assuming most people here can read code.

if (year < 2010) {
   the loan charge doesn't apply;
   if (year is closed) you're in the clear; nothing to pay;
   if (year is open) at some point in the future, you may either have to settle or contest
      the tax liability at a tribunal;  /* "future" could be several years */
}

if (year > 2010) {
   the loan charge does apply;
   if (settlement works out cheaper than loan charge) then settle;
   if (loan charge works out cheaper than settlement) {
      if (year is closed) you can pay the loan charge, and that's the end of the matter;
      if (year is open) you can pay the loan charge, but at some point in the future you may
         have to settle and pay the shortfall (settlement minus loan charge);  /* "future" could be many years */
   }
}

[eek]

I'm assuming most people here can read code.

if (year < 2010) {
   the loan charge doesn't apply;
   if (year is closed) you're in the clear; nothing to pay;
   if (year is open) at some point in the future, you may either have to settle or contest
      the tax liability at a tribunal;  /* "future" could be several years */
}

if (year > 2010) {
   the loan charge does apply;
   if (settlement works out cheaper than loan charge) then settle;
   if (loan charge works out cheaper than settlement) {
      if (year is closed) you can pay the loan charge, and that's the end of the matter;
      if (year is open) you can pay the loan charge, but at some point in the future you may
         have to settle and pay the shortfall (settlement minus loan charge);  /* "future" could be many years */
   }
}

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

[luxCon]

I'm assuming most people here can read code.

if (year < 2010) {
   the loan charge doesn't apply;
 
}

if (year > 2010) {
   the loan charge does apply;
   if (settlement works out cheaper than loan charge) then settle;
 
}

For the sake of accuracy, when you say 2010, confirm you mean on and after 9th December 2010, True?

Fo if I was in a scheme in the whole of 2010, I will onlu pay LC for the amount i received in the last say 3 weeks of December, not the earlier months in 2010?

[eek]

For the sake of accuracy, when you say 2010, confirm you mean on and after 9th December 2010, True?

Fo if I was in a scheme in the whole of 2010, I will onlu pay LC for the amount i received in the last say 3 weeks of December, not the earlier months in 2010?

The year 2010 isn't covered in the logic but Find out how the changes to the loan charge affect you - GOV.UK. says 9th December 2010 so only on money received after 8/12/2010.

[Paralytic]

I'm assuming most people here can read code.

if (year < 2010) {
   the loan charge doesn't apply;
   if (year is closed) you're in the clear; nothing to pay;
   if (year is open) at some point in the future, you may either have to settle or contest
      the tax liability at a tribunal;  /* "future" could be several years */
}

if (year > 2010) {
   the loan charge does apply;
   if (settlement works out cheaper than loan charge) then settle;
   if (loan charge works out cheaper than settlement) {
      if (year is closed) you can pay the loan charge, and that's the end of the matter;
      if (year is open) you can pay the loan charge, but at some point in the future you may
         have to settle and pay the shortfall (settlement minus loan charge);  /* "future" could be many years */
   }
}

What about 2010? You need more unit tests

[DealorNoDeal]

The 2010/11 tax year is a bit messy, and I couldn't be bothered coding it.

[Paralytic]

The 2010/11 tax year is a bit messy, and I couldn't be bothered coding it.

I suspect you once worked for an offshore consultancy I worked alongside...

[DealorNoDeal]

I suspect you once work for an offshore consultancy I worked alongside...

I'd do a better job of it if I was getting paid for it. (well maybe )

[eek]

I'd do a better job of it if I was getting paid for it. (well maybe )

I adopt an MVP and time and materials approach, for stuff like this with dodgy complex edge cases you just add an alert("here be dragons") bit and get everyone to accept the work required doesn't justify the expense...

[luxCon]

Payments after 9th December 2010

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