New settlement terms

[webberg]

Disguised remuneration settlement terms 2020 - GOV.UK

Lots of new rules to get heads around here.

Interesting (and possibly unlawful) twist here is that if the loan charge is paid AND the income from the DR scheme was less than £75k pa, then HMRC "will not collect" any further "tax" (almost certainly not tax in this case but interest).

In effect saying that whilst an open enquiry will not be "closed", no further money will be due. (Para 6).

That requires some further thought along with the rest of this document.

[regron]

I found the part around 'residual tax' interesting ! In the fact you 'could ' benefit, providing you are not involved in any litiagtion against HMRC !!!

How very HMRC !!!

[Clairol]

Disguised remuneration settlement terms 2020 - GOV.UK

Lots of new rules to get heads around here.

Interesting (and possibly unlawful) twist here is that if the loan charge is paid AND the income from the DR scheme was less than £75k pa, then HMRC "will not collect" any further "tax" (almost certainly not tax in this case but interest).

In effect saying that whilst an open enquiry will not be "closed", no further money will be due. (Para 6).

That requires some further thought along with the rest of this document.

What happened to paying the right amount of tax?
Where did this £75k figure get made up from?
Why is it dependent on not litigating? Are they scared of something?

[regron]

They've always been scared, that's why the Loan Charge was invented once they lost the Rangers case, despite winning it !!
Oh, and let's not forget the invention of APN's prior to the LC.
All designed to circumvent litigation.

What happened to paying the right amount of tax?
Where did this £75k figure get made up from?
Why is it dependent on not litigating? Are they scared of something?

[Albert49]

Residual Tax

Disguised remuneration settlement terms 2020 - GOV.UK

Lots of new rules to get heads around here.

Interesting (and possibly unlawful) twist here is that if the loan charge is paid AND the income from the DR scheme was less than £75k pa, then HMRC "will not collect" any further "tax" (almost certainly not tax in this case but interest).

In effect saying that whilst an open enquiry will not be "closed", no further money will be due. (Para 6).

That requires some further thought along with the rest of this document.

I settled my post 2011 years because I thought that there was no way of avoiding the Loan Charge, and if it was cheaper than settlement then the enquiry would remain open and I would have to pay the difference to end it.
Now it obvious that duplicitous HMRC have conned me, if I had opted to pay the Loan Charge on at least some of those years and spread it over 3 years, I could have avoided the late payment interest they charged me, and offset the LC with a pension contribution

[starstruck]

Webberg persistently said that the LC wasn't a resolution (which probably swayed some minds) whereas others said they couldn't see HMRC bothering with open years after having collecting the LC - it seems they were both partly right and partly wrong depending how much you took as loans.

[DealorNoDeal]

I wonder how many people, who earned more than £75k pa, paid the LC?

[QCApproved]

iniquity

I settled my post 2011 years because I thought that there was no way of avoiding the Loan Charge, and if it was cheaper than settlement then the enquiry would remain open and I would have to pay the difference to end it.
Now it obvious that duplicitous HMRC have conned me, if I had opted to pay the Loan Charge on at least some of those years and spread it over 3 years, I could have avoided the late payment interest they charged me, and offset the LC with a pension contribution

another iniquity to join the rest. I was in a similar position but settled only 1 year post 11
You helped a lot of people here and elsewhere re the pension contributions questions albert. As others have indicated not sure very many will be able to benefit now from this concession.

[EBTContractor]

I've spoken to HMRC a number of times now and it does sound as long as you meet the below conditions no additional/residual tax is due:

1. Below 75k paid out from 2010-2014
2. Not litigating
3. Paid loan charge

[DealorNoDeal]

1. Below 75k paid out from 2010-2014

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