• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.

New settlement terms

Collapse
X
Collapse
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    New settlement terms

    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.
    Best Forum Adviser & Forum Personality of the Year 2018.

    (No, me neither).

    #2
    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 !!!
    STRENGTH - "A river cuts through rock not because of its power, but its persistence"

    Comment


      #3
      Originally posted by webberg View Post
      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?

      Comment


        #4
        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.
        Originally posted by Clairol View Post
        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?
        Last edited by regron; 20 November 2020, 19:12.
        STRENGTH - "A river cuts through rock not because of its power, but its persistence"

        Comment


          #5
          Residual Tax

          Originally posted by webberg View Post
          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

          Comment


            #6
            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.

            Comment


              #7
              I wonder how many people, who earned more than £75k pa, paid the LC?
              Scoots still says that Apr 2020 didn't mark the start of a new stock bull market.

              Comment


                #8
                iniquity

                Originally posted by Albert49 View Post
                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.
                Last edited by QCApproved; 24 November 2020, 11:06.

                Comment


                  #9
                  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

                  Comment


                    #10
                    Originally posted by EBTContractor View Post
                    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
                    Last edited by DealorNoDeal; 20 December 2020, 08:53.
                    Scoots still says that Apr 2020 didn't mark the start of a new stock bull market.

                    Comment

                    Working...
                    X