Reply to: Settlement deadline 30th September 2020

[Carla58]

Hi There,

I got a phone call finally on September 23rd saying they were sending me a letter for settlement terms.

I pointed out I am not working in the UK and due to a pandemic not letting me enter the UK without quarantining for 14 days getting access to mail is difficult and as discussed please correspond with email (forms filled in for this). the person then said the email would come out instead so I would be able to see before 30th Sept.

He then explained to me that they thought my finances made it unlikely for me to be able to pay (that's because I earn Euro's in another country) and said I should try and raise equity on my house or they could arrange for the money to be taken from the sale of the house when I die.

I mentioned I was hoping to stay alive for a while and would the interest accrue the longer I lived I also mentioned that at the moment I couldn't change a light bulb in my house let alone discuss the idea of borrowing more money from my eager to lend mortgage company.

He then said he was just ringing people to say the letters were coming and that he didn't have any detail of the calculation or my case (so still not actually spoke to someone any use)

Any how no emails or post (I had someone visit house daily) by 30th so used the bulk of the lump sum I had offered to pay the loan charge

trying to source more for the payment in January I guess

Carla

[demby]

I also had the 10% allowance for expenses, but had to press for a correction to their calculations where they included my PAYE nett salary in the loan amount. Once corrected, it's now reduced the settlement amount by £17k (from £87k down to £70k)! Even now, they've made a further mistake in transcribing tax due amounts from their own spreadsheets to the Choices Letter that I have to sign! (Several hundred pounds error to my detriment).

Regarding expenses, I see that many on here have stated they were never given the 10% expenses option. I believe HMRC are legally bound to treat all in a fair and equitable manner (sic). I think it's too late for anyone to now fight for the 10% given the looming end date, but post settlement I wonder if those impacted (never offered the 10% option) may have an actionable complaint legally. (Having to settle to meet the end of Sept date may be construed as being under duress). It may well depend on whether numbers are sufficient to garner publicity. Only a thought...

Make sure you get 10% against your entire income for the year not just the Loan Amount

[Nebulis]

Late to the game

Hi. I was involved in a loan arrangement from 10-Dec-2010 that had the company assured me had been reviewed by a QA and reviewed by a Tax Barrister at KPMG.

I since moved abroad for a few years and have been back since late 2016. I have never been contacted by HMRC regarding any loans (prior to 10-Dec 2010 I used the same company under a different arrangement where the loans were disclosed in the Self Assessment and P11D).

I have lost sleep in recent days as have left it late assuming I could adjust my 2018/19 Self Assessment if needed and pay the outstanding tax (spread over 3 years). I'm not 100% sure as I haven't been contacted by HMRC if I really need to do anything, or whether it's best to include the loans on 2018/19 Self Assessment for peace of mind.

[webberg]

[QUOTE=Carla58;2807958]

Hi Webberg

OK So its not a settlement but if I haven't agreed a settlement with them should I try and pay the first part in whole somehow on 30th September so not to get a penalty for filing late and them adding interest from February?
And if I do that does that money go towards a possible settlement in the future or will I have to do all 3 years that way and settle sometime in 2022 with what they deem is outstanding or would you get a refund if you had overpaid vs the settlement offer?

Sorry for bad punctuation was late after a 13 hour long conference call and I didn't excel in English or Maths just Science

Thanks

Carla

PS I am on queue to them now hopefully get through soon

If you have not settled HMRC will expect you to pay the loan charge. Unless you have a defence, then failing to pay will attract interest.

You can open discussions into the August 2020 settlement terms immediately and the payments made will count towards that eventual settlement.

If you overpay the loan charge it is NON REFUNDABLE.

Elect to spread the amount over three years which will avoid the latter.

(Apologies for the punctuation remark - totally unfair - we've been doing some long days and my patience was a little thin).

[DavidD]

£150 a month

Or pay the rest over 12.5 years ?

If later - Jesus’s !




Sent from my iPhone using Contractor UK Forum

Yes, in excess of 150 months... I could probably have paid in 120 months but I have nearly £20k of Forward Interest and £8k of past interest added on....

[Carla58]

[QUOTE=webberg;2807728]See above.

Also if I haven't worked in the UK for 3 years paying the loan charge seems to look like a good option to me as I assume I wouldn't hit the higher tax rate each year but I am assuming it is an either or solution with the loan charge vs settlement, HMRC want as much as they can get and will want the highest amount [for the 100th time - the loan charge is NOT AN OPTION TO SETTLEMENT - paying the loan charge DOES NOT settle open enquiries]
QUOTE]

Hi Webberg

OK So its not a settlement but if I haven't agreed a settlement with them should I try and pay the first part in whole somehow on 30th September so not to get a penalty for filing late and them adding interest from February?
And if I do that does that money go towards a possible settlement in the future or will I have to do all 3 years that way and settle sometime in 2022 with what they deem is outstanding or would you get a refund if you had overpaid vs the settlement offer?

Sorry for bad punctuation was late after a 13 hour long conference call and I didn't excel in English or Maths just Science

Thanks

Carla

PS I am on queue to them now hopefully get through soon

[eek]

Received a letter in May asking if I wanted to settle. Replied saying yes but wanted time to pay and included some financial info.

Received another letter over 12 weeks later asking for more financial details and saying I had to the 27th August to send it back.

Sent that back recorded delivery - they got it on 26th - still waiting for a reply with a monthly repayment plan.

Only 11 working days to the end of the month

What a bunch of incompetent arse-holes we are dealing with

Why didn't the idiots ask for the full financial information on the original letter?
Why did it take the pricks 12 weeks to send the 2nd letter?

Um have you noticed any changes in the country within the past 6 months?

[demby]

£150 a month

Or pay the rest over 12.5 years ?

If later - Jesus’s !




Sent from my iPhone using Contractor UK Forum

Received a letter in May asking if I wanted to settle. Replied saying yes but wanted time to pay and included some financial info.

Received another letter over 12 weeks later asking for more financial details and saying I had to the 27th August to send it back.

Sent that back recorded delivery - they got it on 26th - still waiting for a reply with a monthly repayment plan.

Only 11 working days to the end of the month

What a bunch of incompetent arse-holes we are dealing with

Why didn't the idiots ask for the full financial information on the original letter?
Why did it take the pricks 12 weeks to send the 2nd letter?

[GhostofTarbera]

For anyone who is interested, I've agreed a settlement today, Lump sum + > 150 months to pay back the rest.

Out.

£150 a month

Or pay the rest over 12.5 years ?

If later - Jesus’s !




Sent from my iPhone using Contractor UK Forum

[Simon100]

For anyone who is interested, I've agreed a settlement today, Lump sum + > 150 months to pay back the rest.

Out.

Just out of interest how long did it take HMRC to accept your letter of offer?

[DavidD]

For anyone who is interested, I've agreed a settlement today, Lump sum + > 150 months to pay back the rest.

Out.

[webberg]

Hi Webberg

I don't think I have got as far as discussing settlement, [did you register for settlement and send the relevant details to HMRC before 5th April 2019?] I got close a couple years ago, but this time due to living in another country (with limited travel options to uk) [will not be accepted by HMRC as an excuse] not getting any contact with them [we are a self assessment system and it is for YOU to contact them no matter how "difficult" that may be]

As far as I can tell I respond to them by phone and email and they ignore it and don't reply and they haven't put me in contact with a person dealing with my case how ever much I ask [there is no "person" dealing with your case. Your case will be assigned to a team and you will have to speak with probably a different person every time you call]

I have now got my self confused reading more on this site as it looks as if you pay the loan charge you still haven't settled [this is correct - no settlement = loan charge due] even though you have paid the tax on the loan [I don't understand this - how have you paid tax on the loan?], so what is the extra money they would be looking for [some punctuation would help? if you have paid tax on the loan then the loan charge may not be due, I'm just a bit confused about how you've done that] is it a fine of some sorts for breaking the law [no - it's a tax on outstanding loans] as they seem to think that I knew I was breaking the law even when I tell I have as much understanding of this as why my endowment mortgages left me up schitt's creek and if I settle with HMRC I still seem to owe the total loan to some other company called FS Capital!!! [the tax due on income/loan and the loan itself are entirely separate legal issues. Paying the tax has no effect on whether the loan is repayable or not.]

Also if I haven't worked in the UK for 3 years paying the loan charge seems to look like a good option to me as I assume I wouldn't hit the higher tax rate each year but I am assuming it is an either or solution with the loan charge vs settlement, HMRC want as much as they can get and will want the highest amount [for the 100th time - the loan charge is NOT AN OPTION TO SETTLEMENT - paying the loan charge DOES NOT settle open enquiries]

thanks

Carla

See above.

You need some advice and quickly.

Anonymous posters on a forum are unlikely to offer advice that can be relied upon because you have no idea what their knowledge, experience, expertise, motives are.

[DealorNoDeal]

I have now got my self confused reading more on this site as it looks as if you pay the loan charge you still haven't settled...

Which years were you in the scheme? Are the years open? (Open means HMRC opened an enquiry into your tax returns or issued an assessment.)

The above affects where you stand in terms of loan charge -vs- settlement.

[Carla58]

You're waiting on HMRC for settlement. If you get that, then there is no need to make any disclosure in a tax return.

If you are unable to settle because of your delays (or choice) then you need to complete the online form for outstanding loans, complete the SATR boxes and elect for the three year treatment. It's all explained in those documents.

If you are unable to settle despite your best efforts, because HMRC has not responded, then that's tricky. Strictly that rules you out of Nov 17 terms and you need to do the disclosure above. However if you advanced in the process I find it hard to imagine that the deadline means quite what HMRC claims.

This is a very unsatisfactory situation all round.

HMRC has to carry some blame here.

However many people who want to settle also left things late.

Hi Webberg

I don't think I have got as far as discussing settlement, I got close a couple years ago, but this time due to living in another country (with limited travel options to uk) not getting any contact with them

As far as I can tell I respond to them by phone and email and they ignore it and don't reply and they haven't put me in contact with a person dealing with my case how ever much I ask

I have now got my self confused reading more on this site as it looks as if you pay the loan charge you still haven't settled even though you have paid the tax on the loan, so what is the extra money they would be looking for is it a fine of some sorts for breaking the law as they seem to think that I knew I was breaking the law even when I tell I have as much understanding of this as why my endowment mortgages left me up schitt's creek and if I settle with HMRC I still seem to owe the total loan to some other company called FS Capital!!!

Also if I haven't worked in the UK for 3 years paying the loan charge seems to look like a good option to me as I assume I wouldn't hit the higher tax rate each year but I am assuming it is an either or solution with the loan charge vs settlement, HMRC want as much as they can get and will want the highest amount

thanks

Carla

[Simon100]

So HMRC has had 6 working days - max?

This is not an instant process and you should give then 10 working days and then be on the phone every day.

Thanks Webberg, I'll do that. If I do need to phone them, is there anything I can say other than hurry up that will speed up their decision?

Also, given that I've used their calculations, is it likely they'll accept?