HMRC Enquiry letters on Loans from EBT and other schemes

[Finalwhistle]

Dead Years? Tax Advisors please....

I have heard that HMRC are limited as to how many years they can go back? Something along the lines of 6 years for careless or 20 years if they feel its complete evasion or something along those lines.
So... is there such thing as a delay tactic? Yes i appreciate that the loans tax is there to pick up all legacy loans. however if some of them are over 6 years old then are they done and dusted?
So by the time April 2019 comes along...anything from the 2012/13 tax year is gone/ closed/ not investigable? Or can they go back 6 years from when the original enquiry was sent? i.e. so they use it as a peg in the sand to avoid losing any further previous years?

[Iliketax]

what happens if you just put it on your SA and don't go through CLSO? surely it amounts to the same thing!?

There are a few separate issues here:

1. Are you able to amend your tax return by yourself? Now, i.e. February 2018, you'd normally only be able to amend you 2016/17 tax return by yourself. You won't be able to change earlier tax returns. You can write to HMRC to make corrections.

2. You need to make sure what you put on your tax return is right. Depending on the exact scheme then that may need to be more than the amount of the loan.

3. Putting the original loan as income on your tax return does not change the April 2019 loan charge. There is still a loan. You actually have to pay the tax (or get time to pay) for there to be no April 2019 loan charge tax.

[Iliketax]

I have heard that HMRC are limited as to how many years they can go back? Something along the lines of 6 years for careless or 20 years if they feel its complete evasion or something along those lines.
So... is there such thing as a delay tactic? Yes i appreciate that the loans tax is there to pick up all legacy loans. however if some of them are over 6 years old then are they done and dusted?
So by the time April 2019 comes along...anything from the 2012/13 tax year is gone/ closed/ not investigable? Or can they go back 6 years from when the original enquiry was sent? i.e. so they use it as a peg in the sand to avoid losing any further previous years?

Can I suggest you do some proper reading about the April 2019 loan charge? It applies to loans made from 6 April 1999. Delaying will not change that.

[stonehenge]

Can I suggest you do some proper reading about the April 2019 loan charge? It applies to loans made from 6 April 1999. Delaying will not change that.

WHS

[Finalwhistle]

WHS

What is WHS?
Delaying it does not change it’s applicability. However if there is no enquiry (currently) then they cannot investigate it anyway. Or are saying that because of this loan charge they now have the right to investigate affairs as far back as 1999?

[Finalwhistle]

There are a few separate issues here:

1. Are you able to amend your tax return by yourself? Now, i.e. February 2018, you'd normally only be able to amend you 2016/17 tax return by yourself. You won't be able to change earlier tax returns. You can write to HMRC to make corrections.

2. You need to make sure what you put on your tax return is right. Depending on the exact scheme then that may need to be more than the amount of the loan.

3. Putting the original loan as income on your tax return does not change the April 2019 loan charge. There is still a loan. You actually have to pay the tax (or get time to pay) for there to be no April 2019 loan charge tax.

I understand. Thanks for this iliketax.

[stonehenge]

What is WHS?
Delaying it does not change it’s applicability. However if there is no enquiry (currently) then they cannot investigate it anyway. Or are saying that because of this loan charge they now have the right to investigate affairs as far back as 1999?

WHS = What He Said

If you received a loan, at any time since 1999, then the loan charge enables HMRC to tax it.

It makes no difference whether there is an open enquiry or not.

[Iliketax]

Or are saying that because of this loan charge they now have the right to investigate affairs as far back as 1999?

The other side of this is that you have an obligation to self-report pro-actively.

[Finalwhistle]

thanks and quotes?????

The other side of this is that you have an obligation to self-report pro-actively.

I see. Although the obligation to declare them perhaps has been there since day one!?

Well i would like to see exactly where i stand in terms of CLSO2 so if there are any advisors out there would like to provide a quote for a 'CLSO 2 assessment' then please do let me know. In totally its 3 arrangements over 4 years.

Although the news has not been good I think this forum has been invaluable to me so i really do thank you to everyone who has helped me understand and spent the time asking me (sometimes intentionally) stupid questions. I would advise anyone reading these threads with their own questions to just get involved!! thanks to the guys who've PM'd me too

once this total amount has been declared...does anyone know how quickly the money has to be paid back? If the CLSO process has been started i'm assuming that the Loan Charge stuff and those timescales are irrelevant. I've always kept an offset mortgage as back up in case this stuff every materialises...seems like that Plan B is gonna be needed.

[webberg]

It's unlikely any firm will put their prices on here.

Firms tend to charge in two ways.

One is an hourly rate which varies according to who is doing the work (higher rates from more experienced people). Good in that you pay for time spent. Not so good if you don't know at the outset how many hours are going to be spent. Also not good if the adviser is going to rack up a number of hours just to get to the start line.

The other is a fixed rate. Good in that the fee does not change, regardless of the time requirement. Not so good as the fee is usually payable up front and is not refundable. Also not good if you think that the work is not worth it.

Personal choice.

You need to call and ask.