Loan Charge Next Steps..

[webberg]

Current Status:
1. I have loans in 2018-19,2019-20
2. Umbrella company went into liquidation (CVL) in Jan 2020. Not really relevant in HMRC world
3. HMRC sent me letter 2 weeks ago regarding Loan Charge "Steps I need to take since I am not in settlement talks'. I assume they have all details regarding my loans.
4. I have already submitted my 2018-19 SA in Dec 2019 (without loans declared).

Plan:
I have work out what tax + ni I need to pay as part of the Loan charge and would like to pay these over 3 years.
But I am also want to wait as long as possible in case the Liquidators request me to pay back loan amounts.

Questions:

1. How long can I wait before contacting HMRC regarding electing to pay charge over 3 years ? YOu need to submit your amended 18/19 tax return before 30/9/20
2. Can I just sit tight contact HMRC before Sept 2020.?

Your 18/19 return just deals with the loan charge and that means all loans outstanding at 5/4/19.

So the 19/20 loans are not subject to the loan charge. Instead HMRC argue that the loans are taxable under general principles and/or Part 7A.

If you chose to believe that you will need to include loans as income in the 19/20 tax return. Tax will fall due no later than 31/1/21.

If you chose not to, you need a reason - preferably many reasons - why not and be prepared for a fight.

[rexx]

I don't know the actual mechanics of how you elect to pay over the 3 years. (Has HMRC even explained this yet?)

But, prior to Sept 2020, you would need to amend your 2018/19 return to include 1/3rd of the loans and then pay the additional tax & NI.

In the letter they send they said guidance on how to elect to will be published in early 2020.
I guess I just wait and see.

[DealorNoDeal]

1. How long can I wait before contacting HMRC regarding electing to pay charge over 3 years ?
2. Can I just sit tight contact HMRC before Sept 2020.?

I don't know the actual mechanics of how you elect to pay over the 3 years. (Has HMRC even explained this yet?)

But, prior to Sept 2020, you would need to amend your 2018/19 return to include 1/3rd of the loans and then pay the additional tax & NI.

[rexx]

Current Status:
1. I have loans
2 How long can I wait before contacting HMRC regarding electing to pay charge over 3 years ?
2. Can I just sit tight contact HMRC before Sept 2020.?