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

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  • tollo
    replied
    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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  • tollo
    replied
    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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  • Albert49
    replied
    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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  • Delendog
    replied
    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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  • Albert49
    replied
    Originally posted by tollo View Post
    I asked if I could claim expenses against a settlement figure and was told to submit them. 10% of the expenses I submitted, without receipts, was allowed against the settlement. I was told this was the maximum permitted.
    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) ) ?

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  • tollo
    replied
    I complained to HMRC that their delays and inaction meant that I would miss their imposed deadline last year, complaint was upheld and I could settle on 2017 terms. Subsequent to this I asked about expenses and submitted them as detailed in previous posts. Years involved were 2013 and 2014.

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  • nickyboyc
    replied
    Can I also ask what years you are settling and under what terms? 2020 Terms?

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  • tollo
    replied
    I claimed for mileage, working away from home, using the HMRC mileage figures and temporary accommodation costs i.e.weekly rent.

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  • nickyboyc
    replied
    Out of interest what sort of expenses were incurred?
    I'm guessing it will be the case for most people that receipts will no longer be available for these time periods back.

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  • tollo
    replied
    I asked if I could claim expenses against a settlement figure and was told to submit them. 10% of the expenses I submitted, without receipts, was allowed against the settlement. I was told this was the maximum permitted.

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