Getting desperate - HMRC Loan Scheme

[GregRickshaw]

Thank you all so much, I did make tea and take a breath. I'm no longer a contractor as it was all too much to deal with. I was not equipped with how to deal with finances and HMRC, I didn't have a very hands on accountant.

I called HMRC yesterday morning and advised the numbers don't make any sense as they've added I earned £154k in 2018/19 which is completely inaccurate.

Also that between '15-17 I worked for SP Management Ltd, who I've never heard of.

The advisor asked me to email [email protected] advising them of our conversation, which I've done.

Now I suppose I wait. I appreciate the suggestions for tax specialists but honestly, money is very tight so I'm not sure I can afford any additional help and I don't have anyone I can ask for financial help unfortunately.

Webberg from WTT has posted this about the high amount you are seeing. HTH

"The simple answer is that most 2018/19 discovery assessments claim to be in respect of the loan charge.

The loan charge is a tax specific to those who have used disguised remuneration schemes, principally therefore contractors and owners of small/medium businesses who used EBTs.

The loan charge adds to your 2018/19 income, all unpaid loans that have arisen from the use of schemes between 9th December 2010 to 5th April 2019.

So if you get an assessment and think "I've never earned that in 2018/19", think about the loans from the period above, add them to earnings in 18/19 and you'll get very close to the scary number on the assessment."

[NickLeeson2]

Now that HMRC have decided the income should be taxed under PAYE, can Expenses be offset against the Tax to reduce the liability, for all years effected?

[Diagnose b4 u prescribe]

Now that HMRC have decided the income should be taxed under PAYE, can Expenses be offset against the Tax to reduce the liability, for all years effected?

I asked the same question of HMRC in an email last year. Their reply was "Unfortunately, expenses cannot be set against the loan charge, as the loan charge just charges the loan amounts to income tax." So it was batted straight back to me

[NickLeeson2]

I asked the same question of HMRC in an email last year. Their reply was "Unfortunately, expenses cannot be set against the loan charge, as the loan charge just charges the loan amounts to income tax." So it was batted straight back to me

But it isn't a lone. That is were the unfairness lies.

[GregRickshaw]

How was it not a loan?

[Diagnose b4 u prescribe]

But it isn't a lone. That is were the unfairness lies.

It may be unfair but the "Loan Charge" legislation is simply the name attached to an overall approach covering a range of schemes. You should ignore the fact the promoter may have called it something else like an employee benefit scheme or something similar

[eek]

But it isn't a lone. That is were the unfairness lies.

That’s a bit of good news then - you only owe money to HMRC and the scheme promoter doesn’t have any means by which they could come back and ask for the loan to be repaid.

which is better than what happened to the people who used Felictias or similar schemes.