Loan Charge + 50% payment on account for next year???

[OutRiding]

In the words of Bob Dylan:

I have filed out the return to get an accurate figure but have not yet submitted it officially.

My take is there is little chance the loan charge is going to be revoked before the payment date. I assume people will have to pay and then if there are any changes due to the review a reclaim process will need to be followed.

To be clear this will wipe out all our savings, the amount I now have to pay being 100% more than the original tax due as i made the mistake of working hard and i now have the privilege of paying a 60% marginal tax rate on the first 25K due to the removal of tax free allowance over 100K and the rest of it will be taxed at 45%.

All pretty punitive stuff that leaves a very bitter taste in the mouth, made all the worse by the double standards of when HMRC decide something is aggressive tax avoidance vs tax avoidance that theyre completely fine with when conducted by the ultra high net worth individuals and multi national companies.

Take for example all the billions in stamp duty that was avoided on London property by purchasing via an offshore company. I notice that this blatant loophole / avoidance measure was fixed by the introduction of new rules prospectively and HMRC didn't deem it necessary to fire up the rule changing time machine to collect the billions that have been avoided in this manner over the last 20 years.

The problem with EBTs as far as i can see is that middle class people used them and HMRC/ Govt have made it clear that they will not tolerate middle class tax avoidance.

Cant have everyday people lowering their tax bill by working the system.

Sorry for the rant , just needed to vent!

"Steal a little and they put you in jail. Steal a lot and they make you king"

[DavidD]

I think your post is 'spot on' accurate

[FTTM]

I am wondering the same thing.

I cannot afford the LC payment on 31/01. I'm living daily on a red line, thinking what will happen if I put the loans as income.

HMRC aren't answering any letters/emails about my settlement.

I have filed out the return to get an accurate figure but have not yet submitted it officially.

My take is there is little chance the loan charge is going to be revoked before the payment date. I assume people will have to pay and then if there are any changes due to the review a reclaim process will need to be followed.

To be clear this will wipe out all our savings, the amount I now have to pay being 100% more than the original tax due as i made the mistake of working hard and i now have the privilege of paying a 60% marginal tax rate on the first 25K due to the removal of tax free allowance over 100K and the rest of it will be taxed at 45%.

All pretty punitive stuff that leaves a very bitter taste in the mouth, made all the worse by the double standards of when HMRC decide something is aggressive tax avoidance vs tax avoidance that theyre completely fine with when conducted by the ultra high net worth individuals and multi national companies.

Take for example all the billions in stamp duty that was avoided on London property by purchasing via an offshore company. I notice that this blatant loophole / avoidance measure was fixed by the introduction of new rules prospectively and HMRC didn't deem it necessary to fire up the rule changing time machine to collect the billions that have been avoided in this manner over the last 20 years.

The problem with EBTs as far as i can see is that middle class people used them and HMRC/ Govt have made it clear that they will not tolerate middle class tax avoidance.

Cant have everyday people lowering their tax bill by working the system.

Sorry for the rant , just needed to vent!

[FTTM]

If you want to mitigate with pension payment for example.

Im no expert but I assumed I have missed that boat? As far as i know you cannot make AVCs for a previous tax year?

I realise now that i could of offset some of the charge by increasing pension contributions in 2018 / 2019 but HMRC only wrote to me about the loan charge in September this year. I foolishly thought that when i voluntarily settled in 2015 for all my outstanding enquiries , that was the end of the matter but now i have found out I have to pay HMRC for where they have no valid enquiries as well.

[starstruck]

May I ask why you are completing your return ahead of the LC Review outcome being known?

If you want to mitigate with pension payment for example.

[ChimpMaster]

May I ask why you are completing your return ahead of the LC Review outcome being known?

I am wondering the same thing.

I cannot afford the LC payment on 31/01. I'm living daily on a red line, thinking what will happen if I put the loans as income.

HMRC aren't answering any letters/emails about my settlement.

[Delendog]

ahhh , found it i think. its not actually on the return itself but a seperate link after you have filed a return.

May I ask why you are completing your return ahead of the LC Review outcome being known?

[FTTM]

ahhh , found it i think. its not actually on the return itself but a seperate link after you have filed a return.

[FTTM]

been through the whole return again and i can't see where that is? do you know which section? Thanks

[eek]

Hi

Just filled in my self assessment for 2019, added in loan charge details and on the tax due calculation not only is it asking for the tax due on the loan charge by Jan 31st , they also want 50% payment on account paid then as well?

i.e they are projecting that the income for loan charge will be "earned" again next year and they want 50% payment on account for this in Jan and the other 50% 31st July??

Surely there must be a way to adjust for this? Ive looked but can't see anything.

Thanks

There should be a section where you get the option to state that next years income is projected to be smaller than this years and add a suggested figure.

[FTTM]

Hi

Just filled in my self assessment for 2019, added in loan charge details and on the tax due calculation not only is it asking for the tax due on the loan charge by Jan 31st , they also want 50% payment on account paid then as well?

i.e they are projecting that the income for loan charge will be "earned" again next year and they want 50% payment on account for this in Jan and the other 50% 31st July??

Surely there must be a way to adjust for this? Ive looked but can't see anything.

Thanks