Edge EBT thread

[Underbase]

No.

A loan document deals with a transfer of money and the terms and conditions attached to that. Relatively simple and very flexible and easy to manipulate.

For example can anybody explain convincingly the difference between a loan and deposit account? Both have very similar characteristics depending on whose perspective you view them from. This is a favourite trick question in banking exams.

As a random side story, I actually know of at least one large financial institution that couldn't shoe horn a deposit into their FO trading system, and instead used "reversed loans" always confused newbies.

[tax is taxing]

Link please?

Read it on hard paper copy and hence no link....

[EBTContractor]

I'll pay mine and probably in full

Paying mine in full this week. This won't go away so bye bye cash.

[Brompton]

settlement

Paying mine in full this week. This won't go away so bye bye cash.

Could you please give us a some detail on how you came to a settlement?

[IPMAN]

How to avoid incurring interest on disputed APN amounts

I've registered for settlement - keeping my options open, but meanwhile i'd like to hand over wonga to hm to avoid interest.

I believe there is a service which allows such payments to be accepted by them.

does anyone have the name or link to it please.

thanks

[SimonJones]

Paying mine in full this week. This won't go away so bye bye cash.

I'm assuming when you say "Paying in full" meaning you are settling.
If this is the case, than please note, this is not final as IHT will still be outstanding.
IHT is applied at 1% of the total loan, from the years that you have used the scheme to the year you finally settle. This accumulates substantially if the scheme was used for few years.

[ireland2013]

Calculation of IHT

So for example you had a loan of £100k for one year in a scheme 10 years ago and you settle this year


you could still be liable to £1k x10 = £10k + interest?

is that correct?

[webberg]

I've registered for settlement - keeping my options open, but meanwhile i'd like to hand over wonga to hm to avoid interest.

I believe there is a service which allows such payments to be accepted by them.

does anyone have the name or link to it please.

thanks

Certificate of Tax Deposit via HMRC website

[SimonJones]

So for example you had a loan of £100k for one year in a scheme 10 years ago and you settle this year


you could still be liable to £1k x10 = £10k + interest?

is that correct?

Yes, this is correct. For example if you used the scheme since 2005/2006 for 4 years than at £100 loan/year your IHT liability will be:
2005/2006 - present = 10 years x 1k = 10K
2006/2007 - present = 9 years x 1k = 9K
2007/2008 - present = 8 years x 1k = 8K
2008/2009 - present = 7 years x 1k = 7K

Total IHT = £34K

In some cases one's IHT will be greater than the actual tax + interest that they are initially after!

This is absolutely crazy. They already tax you with interest, and than on top they want even more.

[gettingangry]

Yes, this is correct. For example if you used the scheme since 2005/2006 for 4 years than at £100 loan/year your IHT liability will be:
2005/2006 - present = 10 years x 1k = 10K
2006/2007 - present = 9 years x 1k = 9K
2007/2008 - present = 8 years x 1k = 8K
2008/2009 - present = 7 years x 1k = 7K

Total IHT = £34K

In some cases one's IHT will be greater than the actual tax + interest that they are initially after!

This is absolutely crazy. They already tax you with interest, and than on top they want even more.

Is this IHT issue confined to the open enquiry years only?

I look forward to seeing a new box on my tax return next year for "Loans from parents, grandparents etc. that you never paid back"