Hi,
Interested to know other people’s experience and thoughts.
I was one that took a chance and used an offshore scheme years back. Thankfully I chose to leave after 2yrs but I ultimately accepted that I was caught by the loan charge when introduced.
I eventually decided to settle the loan charge however after the disclosure window. After contacting HMRC and attempting to settle, months passed as there didn’t seem to be an established process after the disclosure window closed. The online forms/portals were closed and HMRC call centres were unhelpful.
I decided to use a well known and respected tax adviser mentioned numerous times on this site to help with settlement. I disclosed the loan charge through amending my self assessment and paid the entire loan charge, interest and penalties. This was over 4yrs ago.
Whilst I waited months to formally settle, my tax advisor and HMRC eventually agreed that I had in fact overpaid. A large credit sat on my personal tax account and I pushed for settlement for closure and for an eventual refund. HMRC declined to return any funds until settlement was reached.
Years passed and I was eventually notified that HMRC had applied to Companies House to have my struck off LTD company reinstated after several years. They succeeded and I was issued a new tax bill consisting of both personal tax and Employers NICs. HMRC failed to acknowledge that I had already paid the loan charge years earlier and held their line that it didn’t constitute as settlement. The only way I could settle was an agreement that the funds paid to the loan charge was transferred from my personal tax account to my business tax account so settlement could be reached under the LTD. The tax advisor stated it’s an unusual request which they hadn’t come across before but saw no other option.
I signed the documentation and was provided with a revised calculation. After the calculation was deemed to be accurate by my tax advisor I paid the remaining tax on account late last year.
I’m still waiting to reach formal settlement as I’ve waited for an agreement to sign. I last received a letter from HMRC earlier this year about the new enquiry and whether I wanted to put my case on hold. I declined, advised I’ve settled all that is owed including tax, penalties and interest. I just wanted settlement yet I’m still waiting. In the meantime my large credit still remains sat in my personal tax account. I can’t access it, HMRC decline to refund it and now I’m PAYE (inside IR35) I can’t even use it towards my future personal tax.
My tax advisor says to be patient, this is no criticism on them. HMRC are very slow and chasing them doesn’t help but I can’t see an end. I can’t see closure and I can’t see me getting my money back sat on my account despite HMRC agreeing and providing calculations that it’s due to be refunded.
i feel like because I’ve paid I’m now at a disadvantage, they have all the tax so there is no value in them finalising my case but then the sceptic in me makes me think they’ll look at some other reason to come back for more money before I’m issued a settlement.
Some have spoken about getting local MPs involved. Is my case a norm or do I have a point that I should be able to settle and reach closer.
Thoughts?
Interested to know other people’s experience and thoughts.
I was one that took a chance and used an offshore scheme years back. Thankfully I chose to leave after 2yrs but I ultimately accepted that I was caught by the loan charge when introduced.
I eventually decided to settle the loan charge however after the disclosure window. After contacting HMRC and attempting to settle, months passed as there didn’t seem to be an established process after the disclosure window closed. The online forms/portals were closed and HMRC call centres were unhelpful.
I decided to use a well known and respected tax adviser mentioned numerous times on this site to help with settlement. I disclosed the loan charge through amending my self assessment and paid the entire loan charge, interest and penalties. This was over 4yrs ago.
Whilst I waited months to formally settle, my tax advisor and HMRC eventually agreed that I had in fact overpaid. A large credit sat on my personal tax account and I pushed for settlement for closure and for an eventual refund. HMRC declined to return any funds until settlement was reached.
Years passed and I was eventually notified that HMRC had applied to Companies House to have my struck off LTD company reinstated after several years. They succeeded and I was issued a new tax bill consisting of both personal tax and Employers NICs. HMRC failed to acknowledge that I had already paid the loan charge years earlier and held their line that it didn’t constitute as settlement. The only way I could settle was an agreement that the funds paid to the loan charge was transferred from my personal tax account to my business tax account so settlement could be reached under the LTD. The tax advisor stated it’s an unusual request which they hadn’t come across before but saw no other option.
I signed the documentation and was provided with a revised calculation. After the calculation was deemed to be accurate by my tax advisor I paid the remaining tax on account late last year.
I’m still waiting to reach formal settlement as I’ve waited for an agreement to sign. I last received a letter from HMRC earlier this year about the new enquiry and whether I wanted to put my case on hold. I declined, advised I’ve settled all that is owed including tax, penalties and interest. I just wanted settlement yet I’m still waiting. In the meantime my large credit still remains sat in my personal tax account. I can’t access it, HMRC decline to refund it and now I’m PAYE (inside IR35) I can’t even use it towards my future personal tax.
My tax advisor says to be patient, this is no criticism on them. HMRC are very slow and chasing them doesn’t help but I can’t see an end. I can’t see closure and I can’t see me getting my money back sat on my account despite HMRC agreeing and providing calculations that it’s due to be refunded.
i feel like because I’ve paid I’m now at a disadvantage, they have all the tax so there is no value in them finalising my case but then the sceptic in me makes me think they’ll look at some other reason to come back for more money before I’m issued a settlement.
Some have spoken about getting local MPs involved. Is my case a norm or do I have a point that I should be able to settle and reach closer.
Thoughts?
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