Forced into Loan Charge

[Ozcontractor]

Just be aware that paying the loan charge over one year or three does not settle the final liability.

You still have to reach some sort of agreement with HMRC.

Thanks - that is if there is an open enquiry only correct? Paying the loan charge for a year where there is no enquiry is what I have to do to close off matters I may have?

Also is the PA applicable per above? Thanks in advance.

[webberg]

So just to confirm, is it correct to assume that PA is available for 3 years if spreading the loan charge over 3 years worth of self assessment returns?

Just be aware that paying the loan charge over one year or three does not settle the final liability.

You still have to reach some sort of agreement with HMRC.

[Ozcontractor]

So just to confirm, is it correct to assume that PA is available for 3 years if spreading the loan charge over 3 years worth of self assessment returns?

[GoneSurfing]

Interesting.

If you are not UK resident then usually a PA is not available.

Tax on your UK income if you live abroad: Personal Allowance - GOV.UK

Tax on your UK income if you live abroad

You’ll get a Personal Allowance of tax-free UK income each year if any of the following apply:

you hold a British passport
you’re a citizen of a European Economic Area (EEA) country
you’ve worked for the UK government at any time during that tax year

You might also get it if it’s included in the double-taxation agreement between the UK and the country you live in.

[dammit chloe]

Another pointless response. Please answer the valid question being asked or don't respond.

Please go and pay for professional tax advice or deal with it.

[sdchater]

If I moved to Asia several years ago, I would sleep well and forget all about it


Sent from my iPhone using Contractor UK Forum

Another pointless response. Please answer the valid question being asked or don't respond.

[webberg]

Interesting.

If you are not UK resident then usually a PA is not available.

[Iter]

Yes you can

This is where it's a completely wrong as it's all taxed on a single year with just one PA amount. Loans of 2 years should have a PA for each year.

Total loans can be spread over 3 tax years, therefore making use of 3 PA’s

[demby]

Can you use PA on the loan charge?

no other income loan of 50k

so minus PA 12k

38k taxable

Right?

Yes you can

This is where it's a completely wrong as it's all taxed on a single year with just one PA amount. Loans of 2 years should have a PA for each year.

[GhostofTarbera]

If I moved to Asia several years ago, I would sleep well and forget all about it


Sent from my iPhone using Contractor UK Forum

[wattsy]

Can you use PA on the loan charge?

no other income loan of 50k

so minus PA 12k

38k taxable

Right?