New settlement terms

[Paralytic]

Can anyone advise on best course of action?

Yes, someone who knows the full details, such as WTT. Anyone here would be daft to give advice based on the limited details you've provided, and you'd be even dafter to act on that advice.

So my advice would be to pay a little and get professional advice.

[Fred Bloggs]

Hi guys,

Been trying to get my head around the new settlement terms and figure what option is best for me. I rang up HMRC who said I could either stick to the loan charge route or settle under the new terms. I submitted an amended tax return over a year ago before the September 2020 deadline but didn’t hear from HMRC. I now have to decide and let them know which route I will take. I used a DR scheme for about 7 months with roughly 27k in loan amount received. Can anyone advise on best course of action?

Much obliged

Unfortunately, the people best placed to advise you were chased away from here. Call WTT and tell them the facts. I understand the first call is free of charge with subsequent charge for action on your behalf. Ofcourse, other advisers are available if you go that route.

[luxCon]

Unfortunately, the people best placed to advise you were chased away from here. Call WTT and tell them the facts. .

No one was chased away, more like they did a runner with bag full of cash. Over the past years they took joining fees, and monthly subs from around 3,000 clients and have spent Zero on litigation and defense of those clients.

[Fred Bloggs]

No one was chased away, more like they did a runner with bag full of cash. Over the past years they took joining fees, and monthly subs from around 3,000 clients and have spent Zero on litigation and defense of those clients.

Who would you recommend is best placed to advise the OP? Anyone? Nobody?

OP certainly seems to me to need good advice from someone.

[luxCon]

Who would you recommend is best placed to advise the OP? Anyone? Nobody?

OP certainly seems to me to need good advice from someone.

For a 27k in loan amount i certainly would not send the OP to WTT.
The OP is best not to spend a penny on any advice considering the amount of loan, and just settle with HMRC.

Simple free advice, and I dont want £2,500 joining fee, and dont expect the OP to pay me £25 a month for the rest of his life.

[eek]

For a 27k in loan amount i certainly would not send the OP to WTT.
The OP is best not to spend a penny on any advice considering the amount of loan, and just settle with HMRC.

Simple free advice, and I dont want £2,500 joining fee, and dont expect the OP to pay me £25 a month for the rest of his life.

Which part of what terms should I accept is answered in your question l?

[regron]

No one was chased away, more like they did a runner with bag full of cash. Over the past years they took joining fees, and monthly subs from around 3,000 clients and have spent Zero on litigation and defense of those clients.

Not wanting to start a bun fight and I'm sure you have your reasons for those comments however, for a balanced view, I have to disagree with the part I have highlighed in bold. Obvioulsy I cannot disclose evidence, just in case you ask

[dammit chloe]

Not wanting to start a bun fight and I'm sure you have your reasons for those comments however, for a balanced view, I have to disagree with the part I have highlighed in bold. Obvioulsy I cannot disclose evidence, just in case you ask

They have spent some so technically you are correct. They however have not got as far as an FTT verdict. Last I heard they had got as far as a hearing about going to FTT. WTT weren't chased away. They started their service here and left when people started, quite reasonably, asking what the eff they were doing. Lots of talk, no/little action.

To the case of what Laith should do. It shouldn't be difficult to work out figures for settlement and a plan to pay. I'm guessing that settlement is approx 10 grand assuming no interest or penalties, possibly less. I can't see it being worth a long fight. If really unsure of what you are doing then any of WTT, Etc or Armadillo ought to be able to help you settle for a grand or so. TBH any reasonably accomplished tax advisor used to dealing with HMRC could but it helps if they have done it before.

[Laith]

Thank you all for the help. I was in the thinking of not forking out for legal advice due to the loan amount. My issue currently is that I can’t make sense of whether I should settle using the new 2020 settlement terms or stick with using the loan charge route?

On a side note the DR scheme operator has gone into liquidation. Liquidators have a ent a letter asking for the loan amount over a year ago. I replied asking for proof ,further detail and documentation but they haven’t got back to me in over a year. I know these are two separate issues but the new settlement terms mention about loan write off. Do I contact the liquidator again and get the loan written off? Do I do settle with hmrc before this? This is the part which is confusing!

[dammit chloe]

Thank you all for the help. I was in the thinking of not forking out for legal advice due to the loan amount. My issue currently is that I can’t make sense of whether I should settle using the new 2020 settlement terms or stick with using the loan charge route?

On a side note the DR scheme operator has gone into liquidation. Liquidators have a ent a letter asking for the loan amount over a year ago. I replied asking for proof ,further detail and documentation but they haven’t got back to me in over a year. I know these are two separate issues but the new settlement terms mention about loan write off. Do I contact the liquidator again and get the loan written off? Do I do settle with hmrc before this? This is the part which is confusing!

Settlement ought to be less than Loan Charge but I am not up to date on settlement terms. Loan Charge does not settle anything on the years that you have enquiries for but it is like a payment on account for when they are evaluated so HMRC aren't necessarily done with you. Settlement should close those years so you don't have to worry about HMRC coming back for more.

I think you are supposed to get the loans written off within 30 days of settlement for no further charges relating to be triggered.

People asking for Loan Repayment is an issue where you probably do want to speak to professionals to get up to date. I know both WTT, Etc Tax and LCAG have done work in this area although only the first two are professional tax advisors. Most people I think are ignoring them completely so as not to acknowledge they have loans but that is not always a sound strategy. Speak to someone so you know what you are dealing with.