We have seen a number of calculations and posts on the above.
We have had at least three different explanations from HMRC. The first - last summer - was that fees will always be added to loans in calculating settlement. The second - last Autumn - was that fees would never be added. The third - this Spring - is that fees will be applied to "self employed" schemes only.
HMRC's view is likely (we have some under discussion) to be that the offer of settlement is a take it or leave it one and that they will not enter into discussion about whether their view on the inclusion/exclusion of fees is legally correct or likely to find favour in any Tribunal. Their position is (in my opinion), unfair, illogical and designed to extract maximum tax unlawfully.
I suspect their defence is that the settlement is offered on an extra statutory basis and therefore does not need to comply with the tax statutes.
I think that there are a lot of reasons why fees should be excluded.
Sadly however, until I'm surprised by HMRC actually agreeing to heed the law and act within in, I suspect all attempts to remove fees from the equation will be met with a stubborn refusal to even discuss the issue.
Let's hope I'm proven wrong.
