New settlement terms

[EBTContractor]

Wouldn't it be for the entire period covered by the LC ie. 9 December 2010 to 5 April 2016?

In the document that webberg referred to above, it says:

"the average annual income provided to the individual through a disguised remuneration scheme to the individual is £75,000 or less in each tax year"

Which not only appears to contain a typo (repeat of "to the individual") but also this bit doesn't make sense:

average annual income is £75,000 or less in each tax year

Poorly worded indeed.

I'm interpreting this...

the average annual income provided to the individual through a disguised remuneration scheme to the individual is £75,000 or less in each tax year

as 75k DR income per annum = 6 years in scope x 75k (i.e. not 75k spread across the 6 years).

[DealorNoDeal]

Poorly worded indeed.

I'm interpreting this...

the average annual income provided to the individual through a disguised remuneration scheme to the individual is £75,000 or less in each tax year

as 75k DR income per annum = 6 years in scope x 75k (i.e. not 75k spread across the 6 years).

I wonder if they couldn't decide between

1) total income for all years / number of years <= 75k
or
2) income received in each individual tax year <= 75k

It's also not clear whether "income" is just the loans or also includes any salary or self-employed earnings.

[EBTContractor]

I wonder if they couldn't decide between

1) total income for all years / number of years <= 75k
or
2) income received in each individual tax year <= 75k

It's also not clear whether "income" is just the loans or also includes any salary or self-employed earnings.

Agreed. Muppet wording subject to all sorts of interpretation.

[DealorNoDeal]

Agreed. Muppet wording subject to all sorts of interpretation.

Perhaps an indication of how much effort they're going to put in to collect this "residual tax".

Residual tax

[EBTContractor]

Perhaps an indication of how much effort they're going to put in to collect this "residual tax".

Residual tax

I'd say so! They'll move onto the next thing once they've achived a 70-80% return on bullying a tax payer into handing over the alleged tax.

[DealorNoDeal]

I'd say so! They'll move onto the next thing once they've achived a 70-80% return on bullying a tax payer into handing over the alleged tax.

I suspect the number of people, with a DR income of over £75k/year who've paid the loan charge, will be tiny.

For most people, with that level of exposure, settling would have worked out less than paying the charge.

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In other words, there'll probably be bugger all residual tax to collect.

[EBTContractor]

I suspect the number of people, with a DR income of over £75k/year who've paid the loan charge, will be tiny.

For most people, with that level of exposure, settling would have worked out less than paying the charge.

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In other words, there'll probably be bugger all residual tax to collect.

Unless you have no other UK income to declare - that way you can use the tax free allowance and lower bands for the silly loan charge.

[Alexisa]

Settlement interest

[QUOTE=webberg;2832228][url=https://www.gov.uk/

So if your loans were above £75k you get life crippling tax bill but if under that you walk away Scott free? Is this to 'protect' the nurses and other NHS workers who were victims? Nobody else was victims??

[dammit chloe]

[QUOTE=Alexisa;2857396][QUOTE=webberg;2832228][url=https://www.gov.uk/

So if your loans were above £75k you get life crippling tax bill but if under that you walk away Scott free? Is this to 'protect' the nurses and other NHS workers who were victims? Nobody else was victims??[/QUOTE]

You still have to pay the Loan Charge, they just can't be arsed chasing the spare change you have.

[Laith]

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