Originally posted by webberg
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Understood and thank you.Originally posted by Contractor198 View Post
Just be aware that paying the LC is NOT SETTLING.
I know my fellow advisers here tell me that HMRC will stop their enquries once the LC is paid, but that is not what HMRC tell me, nor do I think it will happen.
The years under enquiry have to be settled and cannot be left forever in limbo.
Paying the LC might be best described therefore as a large scale APN which does not need all the terms and conditions and which is not refundable.Leave a comment:
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Hi,
Thanks for the response.
Done some catch up reading and have a rough idea of my liability. Options appear to be:
1) Settle, or pay in 2019 via LC (same difference to me)
2) Join Big Group, see what's happening there
@Webberg - I'll get in touch. ThanksLeave a comment:
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Start with a list of schemes you were involved with and the dates. There is no 10 year cut off. You need to start from 6th April 1999.Originally posted by Contractor198 View Post
If you have no data from those periods, then do some calculations based on your day rate at the time.
Once you have the maximum you would have earned, deduct that tax years' personal allowance (which is usually the salary/drawings paid) and an amount for fees (which we be between 12% and 20%) and the balance will be more or less what HMRC want to tax you on.
Add that amount - calculated by tax year - to your other income for the year. Deduct your personal allowance and apply the appropriate tax rate. These can be obtained from a simple online search.
This gives you the potential tax due.
You then need to decide if you have had enquiries or not from HMRC for any of the years.
If you have had enquiries, add interest to the tax due for those years. Interest rates available on line.
If you have not, no interest is due if you settle.
If you don't know, send an SAR to HMRC to ask them. (Or just call them and ask).
The aggregate of the above gives you the tax/interest due if you settle.
If you used a scheme with a trust, settlement may also involve some IHT. As a guide, add around 1% per annum of the final loan value for IHT.
If you don't want to settle AND all your years are enquiry free, then the total loans (non taxed income from above), will be treated as income in 2018/19. Again, the calculation is relatively simple and follows the above.
There are calculators around. Certainly one of the regular posters here has one that is pretty good and free. We have one on our website which is also good and free. I'm sure an online search will discover more.
Given where you are, I'm going to be bold and suggest that you need some help. Google will give you a decent list of advisers who work in this space. We are one such (WTT) and Phil at DSW is another. More recently we seem to have been joined by a "tax partner of 25 years" but he/she has so far not posted much.
Hope this helps.Leave a comment:
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Hi there - I am in a similar situation and have the same questions so I hope you do not mind me jumping into this thread.Leave a comment:
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What do I owe?
Hi,
Have trawled as many threads as possible but my knowledge in this area is too rudimentary for me to figure out some basics, would appreciate some help!
Got the LC letter, but have no idea what I could potentially owe, or what HMRC think I owe.
How far back can they go, is there a 10 year rule for example or can they go back as long as they like?
If I reach out to them for settlement, it seems they will ask me for a list of loans/years using schemes - I honestly don't have this sort of information anymore. So how does this work?
SAR request - I read about this on one of the threads, would this tell me what information HMRC holds on me regarding loans?
Any help greatly appreciated!
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