Reply to: Any settlement figures yet?

[Doggysoft]

I received my settlement offer recently, including IHT, retrospective and forward interest, my offer is 36% of the total loans. I was only in the scheme for 2 tax years, 2009 and 2010. This seems high, but if I remove the IHT and interest, its 19% of the loans, which seems fair enough.

Apologies for asking a basic question: you said your offer was 36% - was that in response to a figure that they proposed you repaid? How did you arrive at that figure? I've been sent a figure for mine and just wondering how others are going about dealing with theirs.

[sst2019]

I received my settlement offer recently, including IHT, retrospective and forward interest, my offer is 36% of the total loans. I was only in the scheme for 2 tax years, 2009 and 2010. This seems high, but if I remove the IHT and interest, its 19% of the loans, which seems fair enough.

.....

19% is a decent figure to be honest as from experience I have had 33% or 40% with interest.

[Dmac]

I contacted them a while ago to ask them to write the loans off, they said they would only do so upon evidence of a settlement with HMRC. So I've sent them my settlement acceptance letter, with the details and they said they would put the motion forward. I'm still getting active communication from the email [email protected]

OK - so its sounds like they'll play ball once you prove you've settled. Unlike some trusts who I see from these forums are trying to make money out of those requesting loan cancellation / write-off.

[Boydskeet79]

Interesting that you've heard from Knox House - was this prompted by you, or HMRC, or your advisor? Or was it just out of the blue?

I contacted them a while ago to ask them to write the loans off, they said they would only do so upon evidence of a settlement with HMRC. So I've sent them my settlement acceptance letter, with the details and they said they would put the motion forward. I'm still getting active communication from the email [email protected]

[Dmac]

I received my settlement offer recently, including IHT, retrospective and forward interest, my offer is 36% of the total loans. I was only in the scheme for 2 tax years, 2009 and 2010. This seems high, but if I remove the IHT and interest, its 19% of the loans, which seems fair enough.

I've tried asking HMRC a couple of questions, but they're not responding. One confusing thing is, on both my tax calculation sheets, I had an overpaid (declared) tax amount for each year, but HMRC have added this amount to the Income Tax due amount, which seems the opposite of what they should do for an overpayment?!

I've also had confirmation from Knox House this morning that if I provide proof of a settlement agreement with HMRC, they will put forward the motion to write my loans off. No mention of selling my loans to another company or asking for a fee to write the loans off.....yet.

One thing I can't decide on, is if I pay now and start the settlement process and the challenge from the MPs in the court is successful, I'll have paid a settlement fee I don't need to. But if I gamble and they're unsuccessful, it's all going to be due this year!!

Interesting that you've heard from Knox House - was this prompted by you, or HMRC, or your advisor? Or was it just out of the blue?

As regards what action to take, that's a very personal decision. Parliament failed to get the Loan Charge delayed yesterday. I know LCAG and the APPG are trying other routes here, but I think the prospect of the LC being overturned are slim. A delay is the best that can be hoped for, I think.

[Boydskeet79]

I received my settlement offer recently, including IHT, retrospective and forward interest, my offer is 36% of the total loans. I was only in the scheme for 2 tax years, 2009 and 2010. This seems high, but if I remove the IHT and interest, its 19% of the loans, which seems fair enough.

I've tried asking HMRC a couple of questions, but they're not responding. One confusing thing is, on both my tax calculation sheets, I had an overpaid (declared) tax amount for each year, but HMRC have added this amount to the Income Tax due amount, which seems the opposite of what they should do for an overpayment?!

I've also had confirmation from Knox House this morning that if I provide proof of a settlement agreement with HMRC, they will put forward the motion to write my loans off. No mention of selling my loans to another company or asking for a fee to write the loans off.....yet.

One thing I can't decide on, is if I pay now and start the settlement process and the challenge from the MPs in the court is successful, I'll have paid a settlement fee I don't need to. But if I gamble and they're unsuccessful, it's all going to be due this year!!

[webberg]

Who advised you?

I would say any competent adviser reading Schedule 11 F(No 2) A 2017

[Nissan07]

Who advised you?

My Accountant, but though i questioned this they seemed to think it's a requirement to employers obligations under the Finance Act 2017, reporting outstanding loans to HMRC.

[passerby]

Still awaiting my settlement figures, but i have been advised to send letters to my previous employer/umbrella asking them to enter data on an RTI submission system to report outstanding loans by 15th April

Has anybody else come across this?

I am guessing if you are planning to settle this can effectively be ignored?

Who advised you?

[Nissan07]

If it helps at all, I submitted my figures early October and I received a settlement figure from HMRC middle of March. Interest was calculated up until October.

My adviser is in contact with HMRC as they believe HMRC's calculations arent correct. My adviser tells me that although I am past the 30 days from the date on the settlement letter, I can still settle under the CLSO2 settlement terms as the delays are all down to HMRC and the ball is currently in their court with regards to clarifying or potentially recalculating figures.

Still awaiting my settlement figures, but i have been advised to send letters to my previous employer/umbrella asking them to enter data on an RTI submission system to report outstanding loans by 15th April

Has anybody else come across this?

I am guessing if you are planning to settle this can effectively be ignored?

[dangermaus]

You are not the only one, I am also in the same boat and probably many more.

Sent my settlement pack on 30th Sept 2018. 3.5 months pause and then got a query email from HMRC in mid of January to which I responded in a day. It has been a wait game since then.

I called them around 10 days back and raised the same query and asked for a written communication on LC. I did get an email from HMRC stating that I will be given a chance to settle under the same terms as pre LC era.

However, I am not clear if the interests on the pending amount is still accruing or it has been paused till we get the settlement offer.

************************************************** *******************************
Beaten black and blue by HMRC

If it helps at all, I submitted my figures early October and I received a settlement figure from HMRC middle of March. Interest was calculated up until October.

My adviser is in contact with HMRC as they believe HMRC's calculations arent correct. My adviser tells me that although I am past the 30 days from the date on the settlement letter, I can still settle under the CLSO2 settlement terms as the delays are all down to HMRC and the ball is currently in their court with regards to clarifying or potentially recalculating figures.

[blackandblue]

I’ve not received my settlement offer yet. I submitted well before the deadline last year. I’ve had an actual human response before Xmas but was given the stock ‘large volume of requests’ email.

Beginning to worry that I’m going to get stung with LC now, even though I’ve done what I needed to.

Anyone else still waiting?

You are not the only one, I am also in the same boat and probably many more.

Sent my settlement pack on 30th Sept 2018. 3.5 months pause and then got a query email from HMRC in mid of January to which I responded in a day. It has been a wait game since then.

I called them around 10 days back and raised the same query and asked for a written communication on LC. I did get an email from HMRC stating that I will be given a chance to settle under the same terms as pre LC era.

However, I am not clear if the interests on the pending amount is still accruing or it has been paused till we get the settlement offer.

************************************************** *******************************
Beaten black and blue by HMRC

[G0dsquad]

I’ve not received my settlement offer yet. I submitted well before the deadline last year. I’ve had an actual human response before Xmas but was given the stock ‘large volume of requests’ email.

Beginning to worry that I’m going to get stung with LC now, even though I’ve done what I needed to.

Anyone else still waiting?

[NeedTheSunshine]

Not sure what that has to do with my post?

I was simply saying that one's ultimate liability for IHT has nothing to do with whether you "tick the box" or not.

I'll leave you to it then. I did read this:

"Inheritance Tax may be due on the assets held within a trust when:

they’re transferred out of a trust (exit charges)
a 10-year anniversary occurs"

Some of us have already been down the path of settlement with HMRC. And we know what dragons lie there.

As you were.

[dammit chloe]

The IHT depends on how your trust was set up. Some will attract IHT and others not. The whole IHT question was discussed quite a bit on here in 2014/15 when CLSO1 was about. So I'm fairly sure HMRC know which schemes do/don't attract IHT.

They actually don't. They know some, they don't know mine. I don't think it qualifies.