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Settling with HMRC - 10% off loans and salary as an expense

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    #11
    Originally posted by Albert49 View Post

    Can you clarify 10% of the expenses ? If your expenses for a year were £5,000, and the settlement figure for that year was £20,000, , was you final settlement figure for that year £19,500 ( £20,000 - £500 (ie 10% of £5,000) ) ?
    It was off the loan total. If loan was 100K then 90K would be used as the loan value to take into the tax calculations.

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      #12
      Originally posted by Delendog View Post

      It was off the loan total. If loan was 100K then 90K would be used as the loan value to take into the tax calculations.
      Delendog, that was how mine was done also , Tollo's comment "10% of the expenses I submitted, without receipts, was allowed against the settlement." suggested something else.

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        #13
        10% was taken off the settlement figure I.e if amount to pay (settlement) was £20,000 and expenses were £5,000, the revised amount to pay was £19,500

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          #14
          My apologies to all, the premise that expenses are deducted from the loan amounts for the tax calculation is correct, I.e the expenses are not deducted from the settlement figure after the tax has been calculated, but from loan amounts before tax calculation - must have had (another) senior moment, they're getting more frequent.

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