HMRC Disguised Remuneration Repayment Scheme

[morf]

Did you know the loans were no longer included in the loan charge when you signed the settlement? I received a letter from HMRC on Jan 17th 2020 detailing the changes they were going to make titled 'Changes to the loan charge following the independent review' and it looks like a mass mailshot.

If not it could be grounds to push HMRC to reconsider?

It's a good point.

I was aware that they shouldn't be in scope for the loan charge and they were challenged on this, however I have emails from HMRC which state that they still believe the liability was still owing (September 2020). I did seek professional advice and they said I could either settle and be done with it or progress to legal and spend an additional £10-15K on legal fees.

[taxywaxy]

Thanks for the replies, much appreciated.

It just seems odd that say you settled 9th March you can potentially get a refund, settle 12th March 2020 and you're out of luck. As there was no previous mention of this cut off date for anyone, you'd think it would be 30th September 2020 when the Loan Charge closure date was. (This article backs me up but doesn't greatly help - Loan charge refunds – what’s so special about the Budget 2020 date? | RSM UK)

Looks like I'm out of luck on this one as I'm sure plenty of others will be. My settlement would have been much sooner if HMRC had worked faster....

Did you know the loans were no longer included in the loan charge when you signed the settlement? I received a letter from HMRC on Jan 17th 2020 detailing the changes they were going to make titled 'Changes to the loan charge following the independent review' and it looks like a mass mailshot.

If not it could be grounds to push HMRC to reconsider?

[morf]

Good call thanks Eek.

[eek]

Speak to your MP and see if he/she can assert some pressure.

[morf]

Thanks for the replies, much appreciated.

It just seems odd that say you settled 9th March you can potentially get a refund, settle 12th March 2020 and you're out of luck. As there was no previous mention of this cut off date for anyone, you'd think it would be 30th September 2020 when the Loan Charge closure date was. (This article backs me up but doesn't greatly help - https://www.rsmuk.com/blog/loan-char...dget-2020-date)

Looks like I'm out of luck on this one as I'm sure plenty of others will be. My settlement would have been much sooner if HMRC had worked faster....

[piebaps]

March 2020 is the cut off date included in the scheme. Apply for a refund or waiver from the Disguised Remuneration Repayment Scheme 2020 - GOV.UK

11 March 2020 was when the scheme was announced in the Budget.

[taxywaxy]

Hi LuxCon: thanks for replying.

I paid around 12.5K APN and 12.5K settlement so effectively I'm all square with HMRC. However what I can't understand is this 11 March 2020 date HMRC are using as the cut off for repayment decisions. It was never mentioned in any previous paperwork I received from them so keen to pursue the 25K if at all possible / worthwhile. HMRC delayed things many months with slow progress hence thinking about an appeal based on their delays etc.

I'm in the process now, waiting for contract to sign. Settled loans for refund need to be pre-2011 in closed years.

HMRC announced plans to remove pre-2011 loans from loan charge in Dec 2019, so perhaps March 2020 is when it became official? After that date then loans were not due under the loan charge, so probably not refundable under the scheme

[morf]

If you already paid 25K APN on a 50K loan then I would have thought any outstanding settlement amount will be low, with very little interest.

What is the settlement amount on this?

It has been reported that contacting your MP and them writing to HMRC will help with more favourable TTP terms.

Hi LuxCon: thanks for replying.

I paid around 12.5K APN and 12.5K settlement so effectively I'm all square with HMRC. However what I can't understand is this 11 March 2020 date HMRC are using as the cut off for repayment decisions. It was never mentioned in any previous paperwork I received from them so keen to pursue the 25K if at all possible / worthwhile. HMRC delayed things many months with slow progress hence thinking about an appeal based on their delays etc.

[luxCon]

If you already paid 25K APN on a 50K loan then I would have thought any outstanding settlement amount will be low, with very little interest.

What is the settlement amount on this?

It has been reported that contacting your MP and them writing to HMRC will help with more favourable TTP terms.

[morf]

Has anyone had any luck with this?

I applied to see if I was eligible for this but they have just refused my application as not valid as I settled after the 10 March 2020. The delays were all on the HMRC side so I find it particularly unfair that they are using this date as a cut off despite them being responsible for the slow acceptance.

Murphy's law the tax advisor I had used @ Markel Tax has now left the company, so just wondering whether it's worth re engaging them to assist with this?

APN was paid on time originally, loans were 2008-2009 Penfolds approx 50K with a disclosure on my self assessment return, payments to HMRC total approx 25K


Any thoughts / tips / assistance greatly appreciated.