SmartPay Loan Payments

[jbryce]

Just join Big Group

You're not going to find an answer on these forums. Join the Big Group.

[malvolio]

No. Apples and oranges.

Agreed. That's why I was careful to say "loans such as these".

[DotasScandal]

I got a loan to pay off some of my APN (essentially a bill), so is hector now going to treat that as income and expect it to be taxed accordingly?

No. Apples and oranges.

[andyc2000]

Oh dear

I got a loan to pay off some of my APN (essentially a bill), so is hector now going to treat that as income and expect it to be taxed accordingly?

[malvolio]

No one seems to have picked up on the fact that HMRC is seemingly trying to "nudge" the OP into misclassyfing loans as income on his SATR (which would result in the OP paying tax NOT due), without backing this by statute.
Sounds like a good old con to us, in line with the "maximizing the amout of tax collected" business plan. Quite amazing.

HMRC's view is that it may be a loan but you get the benefit of it, in that you can spend the loan to pay your bills, so it should be treated as gross income as far as your SAR is concerned. To be fair, it doesn't need any statute support, the law is already quite clear on what constitutes taxable income: the argument is if a loan such as these falls under that heading. There are many opinions on that...

[eek]

No one seems to have picked up on the fact that HMRC is seemingly trying to "nudge" the OP into misclassyfing loans as income on his SATR (which would result in the OP paying tax NOT due), without backing this by statute.
Sounds like a good old con to us, in line with the "maximizing the amout of tax collected" business plan. Quite amazing.

Given how HMRC calculate the income tax due on a "loan" - I would be seeking advice from a few people before filling any form in....

[DotasScandal]

No one seems to have picked up on the fact that HMRC is seemingly trying to "nudge" the OP into misclassyfing loans as income on his SATR (which would result in the OP paying tax NOT due), without backing this by statute.
Sounds like a good old con to us, in line with the "maximizing the amout of tax collected" business plan. Quite amazing.

[NotAllThere]

...Would residency status affect whether I actually provide a tax return?

Yes and no. You'd still accrue the penalties for not filing etc., you'd still be liable to pay any tax due. If you're not in the UK then it becomes more difficult for them to get the money, but a lot depends on where you are resident.

[phasse7441]

thank you for all the replies - I have left the scheme as of Mar 2016 and no longer apart of it.

Funny that they insist that they are not entitled to list the loans...

Would residency status affect whether I actually provide a tax return?

[DotasScandal]

Sad that people are still falling for these crooked scams.

And sadder that these "promoters" are still allowed to peddle their cr*p.
Almost as if HMRC and the scheme promoters are working together.

[QCApproved]

Ask your scheme provider and their advisors how the decisions in the Huitson cases affect their position
it should be a matter they have been familiar with since 2010

[DonkeyRhubarb]

Sad that people are still falling for these crooked scams.

There is certainly nothing Smart about it.

[QCApproved]

Jesus Wept

Leave the scheme immediately if not sooner and do not send a single further timesheet to your provider.

The actual law is irrelevant
You are the underwriter of all liabilities in this matter not the scheme provider.
Spend the weekend reading through the schemes sections.

When are HMRC approaching all these poor folks again??

[Fred Bloggs]

1 If you're still in the scheme then quit immediately.

2 Contact Big Group to find out what to do next.

[phasse7441]

Hi

I have received a letter from HMRC stating the following:

RE: Your use of a Tax Avoidance Scheme:

"...you should complete your tax return for 2016 to show any loans you have received as earnings.."

"If the loans are not returned as earnings HMRC will carry out a compliance check into your return under S9A of the TMA 1970 to consider your arrangements"

I obviously contacted SmartPay and asked them what I should do about this and they responded as such:

"HMRC have recently written to you, as per the attached letter you sent to us, to advise that they believe that the loans you receive from us as your employer should be declared as income on your self-assessment tax return. However, we firmly maintain our stance which has been backed up by our independent, professional advisers that the loans should NOT be considered as income and it would therefore be incorrect to categorise them on your tax return as such."

The only income that should be declared on your self-assessment return for the tax year 2015/16 is the salary element that has tax and NI deducted at source. If your tax return is being completed by one of our recommended companies, then this is the information that will be provided to HMRC"


Can anyone provide information on how I should handle this?

thanks

PH