Hi Webberg
What if you haven't got a letter and the loan was one from an employer.
Do you engage HMRC or not ?
Thanks
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Loan charge advisory letter
There is a lot of traffic here about the letter HMRC has sent recently regarding the upcoming loan charge.
The following answers some of the common questions and misconceptions behind this.
1. The letter is a general advisory. HMRC said that they would do this and they have. For once HMRC is trying to actually inform contractors in advance of something, rather than allow a scheme to happen and tell you 10 years later it does not work.
2. Receipt of a letter probably means that your name has been found in a list of employees on an ancient or new PAYE return. Nothing else. If you eventually do not disclose loans, expect a follow up saying "are you sure?"
3. Not all schemes used loans within the scope of the loan charge. Get advice.
4. You have a legal obligation to disclose loans that are caught. If you do not, that's your choice but be aware of the penalties. You can be all means send HMRC a SAR to discover what they know about you but playing games with what should be or should not be disclosed is potentially expensive.
5. A lot of promoters will tell you that their loans are not caught because of various factors. That may be true. However that does not mean HMRC will agree. Commonly, the reason given is that the loan is "from the employer". That may be taxable anyway, even without the loan charge. If the loan was from the employer - and how can you prove that? - did it subsequently move? If so, probably caught.
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