HMRC Response

[Jumper]

I would suggest you read the 2020 Settlement terms on HMRC’s website. They aren’t pretty but this is assuming that you didn’t enter settlement pre Sept 2019.

You are liable for your personal tax through SA and sometimes NI dependable on the scheme you used but if you have used your own private limited company and it is still open, you will also be liable for employers NICs so there is a double whammy I am afraid.

You will not be double taxed but unfortunately as per the 2020 settlement terms there is minimal way in relief. 2018 terms gave your LTD company tax relief and you could also claim up to 10% expenses but the current settlement terms don’t offer these. That’s not to say that you couldn’t personally negotiate but it is now unlikely I think.

I am in the process of settling.

Did you have to pay tax and NI via your LTD and also pay tax on your SA?

Was there any relief from HMRC?

[AL1990]

Apologies if this appears somewhere else but does anyone know of the typical HMRC response time? I received a disguised remuneration letter earlier this year and replied with all available information around April/May.

The longer this goes on the more worried I get, I just want a figure or at least a starting point to work with. Each day that goes past I become more and more reclusive from my friends and family and sadly more alcohol dependant. I feel a figure, even a financially crippling one, must be better than this.

By way of an update, I still havnt had a response. So that's the best part of 5/6 months with zero reply. I've phoned multiple times and bless the poor people who work the phoned they have absolutely no information available.

Whats a typical response time? Anyone?

[Jumper]

I know HMRC didn’t have a team for some time dealing with 2020 Settlements. It would seem that they have been opening enquiries left, right and centre on those suspected of using schemes and had not disclosed but didn’t have the team in place to deal with the responses so this is probably why you’ve had such a delay.

Not sure whether that has changed as of yet but I’ve not heard of anyone settling under 2020 terms as of yet.

Have you had enquires opened on both your personal and LTD?

What was your loan value? If you know your loan value you should be able to work out your due tax as essentially the total value of the loan is treated as income on top of your true income for year 18/19. If you’ve had an enquiry opened on your limited company also then there is the NICs to pay also which is a flat 13.8%.

[AL1990]

I know HMRC didn’t have a team for some time dealing with 2020 Settlements. It would seem that they have been opening enquiries left, right and centre on those suspected of using schemes and had not disclosed but didn’t have the team in place to deal with the responses so this is probably why you’ve had such a delay.

Not sure whether that has changed as of yet but I’ve not heard of anyone settling under 2020 terms as of yet.

Have you had enquires opened on both your personal and LTD?

What was your loan value? If you know your loan value you should be able to work out your due tax as essentially the total value of the loan is treated as income on top of your true income for year 18/19. If you’ve had an enquiry opened on your limited company also then there is the NICs to pay also which is a flat 13.8%.

Yeah I've done the rough calculation so should be good to go as soon as they reply. It was only on my personal.

Do you still get the option to spread over 3 years? I'm in a bit of an odd position whereby 18/19 is by far the most I've ever earned in a year (pushing me to higher bracket). I've never earned as much before or since and by 18/19 I was out of schemes for 2 years

[Jumper]

You can request to spread the amount due over 3 years but you are past the cut off now so they will only accept the request in exceptional circumstances to my understanding.

If you’ve only been contacted about your personal tax, they will only be looking for your income tax to be paid.

Is your limited company still open or closed? If you exited the scheme in 15/16 then 4 yrs would have passed, they may not have attempted to open an enquiry if your business is closed as it’s a complex and difficult process.

[AL1990]

You can request to spread the amount due over 3 years but you are past the cut off now so they will only accept the request in exceptional circumstances to my understanding.

If you’ve only been contacted about your personal tax, they will only be looking for your income tax to be paid.

Is your limited company still open or closed? If you exited the scheme in 15/16 then 4 yrs would have passed, they may not have attempted to open an enquiry if your business is closed as it’s a complex and difficult process.

I have a limited company but it was only set up post scheme use. I entered the scheme using an umbrella.

[eek]

I have a limited company but it was only set up post scheme use. I entered the scheme using an “umbrella”.

FTFY as I suspect their definition of what an umbrella company is very different to mine.

[escapeUK]

By way of an update, I still havnt had a response. So that's the best part of 5/6 months with zero reply. I've phoned multiple times and bless the poor people who work the phoned they have absolutely no information available.

Whats a typical response time? Anyone?

Why on earth do you keep chasing them up? With their level of incompetence it could easily be lost, or forgotten, or take so many years they decide to close all old cases, but no, you keep reminding them. PLEASE take my money. Just chill out and cross that bridge when you come to it. I would also go as slow as they do, I probably would not even reply to the first letter, post gets lost all the time. Don't make yourself an easy target for state gangsters.

[AL1990]

Why on earth do you keep chasing them up? With their level of incompetence it could easily be lost, or forgotten, or take so many years they decide to close all old cases, but no, you keep reminding them. PLEASE take my money. Just chill out and cross that bridge when you come to it. I would also go as slow as they do, I probably would not even reply to the first letter, post gets lost all the time. Don't make yourself an easy target for state gangsters.

Because every month they are adding interest to what I could potentially owe. In addition to this I have the worry on if I've squirreled enough away.

[Jumper]

Unless you have the luxury of being able to put money on to you account which would stop interest but I suspect most need TTP arrangements.