Hello all, I will be very grateful if anyone can be of assistance regarding the loan charge and settlement with HMRC.
In April 2015, I was offered a contractor role at a bank. It was my first temp job and I was looking for an accountant for my limited company when I came across SP Management. I was told it was quite legal and everyone is doing it so I signed up. Over the next few months, I was feeling uncomfortable with the scheme and decided to quit in January 2016. My total loan amount for that period was around £25k.
When I signed up to my new accountant I was told to let SP Management deal with my corporation tax and personal tax for that period. The accounts were filled as per their method and my new account continued to handle my business.
Around August 2018, I told my accountant I wanted to settle with HMRC and we started the process. In March 2018 we received a letter from HMRC which states
As you have provided us with the information needed, you will be given a chance to settle on the existing terms. Please lookout for any correspondence we send you in relation to settlement. We hope to send you further information by 22 March 2019.
In September 2020 HMRC accepted an offer to pay around £8k.
In October 2020, I received a letter from HMRC to my limited company demanding around £9k for Reg 80 IT (PAYE) Regs 2003/ Class 1 NIC
My accountant contacted HMRC and he replied:
I’ve spoken to HMRC this morning and they have assured me that no further demands will be sent.
In April 2020, I received a letter from HMRC demanding around £12k from me for the year ending April 2016.
In February 2021, I received a letter from HMRC to my limited company stating that they are enquiring into what is an undisclosed avoidance scheme
In April 2021, another letter from HMRC to my limited company demanding around £7k for National Insurance Contributions and Statutory payment for the year ending 5 April 2016.
My questions:
Does the demand made to my limited company and the enquiry in 2021, after I have informed and provided details in 2018 seem to be a mix-up? I am receiving HMRC letters from different parts of the country.
Also from the Morse Review, it states:
the loan charge will not apply to any outstanding loan before 6 April 2016 if the avoidance scheme was fully disclosed and we did not take action (eg enquiry)
Does this mean I do not need to pay the settlement since my loan was before 2016 and I provided HMRC with the loan details in 2018 and a settlement was made in September 2020 and there was no enquiry from HMRC?
Thanks
In April 2015, I was offered a contractor role at a bank. It was my first temp job and I was looking for an accountant for my limited company when I came across SP Management. I was told it was quite legal and everyone is doing it so I signed up. Over the next few months, I was feeling uncomfortable with the scheme and decided to quit in January 2016. My total loan amount for that period was around £25k.
When I signed up to my new accountant I was told to let SP Management deal with my corporation tax and personal tax for that period. The accounts were filled as per their method and my new account continued to handle my business.
Around August 2018, I told my accountant I wanted to settle with HMRC and we started the process. In March 2018 we received a letter from HMRC which states
As you have provided us with the information needed, you will be given a chance to settle on the existing terms. Please lookout for any correspondence we send you in relation to settlement. We hope to send you further information by 22 March 2019.
In September 2020 HMRC accepted an offer to pay around £8k.
In October 2020, I received a letter from HMRC to my limited company demanding around £9k for Reg 80 IT (PAYE) Regs 2003/ Class 1 NIC
My accountant contacted HMRC and he replied:
I’ve spoken to HMRC this morning and they have assured me that no further demands will be sent.
In April 2020, I received a letter from HMRC demanding around £12k from me for the year ending April 2016.
In February 2021, I received a letter from HMRC to my limited company stating that they are enquiring into what is an undisclosed avoidance scheme
In April 2021, another letter from HMRC to my limited company demanding around £7k for National Insurance Contributions and Statutory payment for the year ending 5 April 2016.
My questions:
Does the demand made to my limited company and the enquiry in 2021, after I have informed and provided details in 2018 seem to be a mix-up? I am receiving HMRC letters from different parts of the country.
Also from the Morse Review, it states:
the loan charge will not apply to any outstanding loan before 6 April 2016 if the avoidance scheme was fully disclosed and we did not take action (eg enquiry)
Does this mean I do not need to pay the settlement since my loan was before 2016 and I provided HMRC with the loan details in 2018 and a settlement was made in September 2020 and there was no enquiry from HMRC?
Thanks
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