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Previously on "Settling with HMRC - 10% off loans and salary as an expense"

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  • tollo
    replied
    My apologies to all, the premise that expenses are deducted from the loan amounts for the tax calculation is correct, I.e the expenses are not deducted from the settlement figure after the tax has been calculated, but from loan amounts before tax calculation - must have had (another) senior moment, they're getting more frequent.

    Leave a comment:


  • tollo
    replied
    10% was taken off the settlement figure I.e if amount to pay (settlement) was £20,000 and expenses were £5,000, the revised amount to pay was £19,500

    Leave a comment:


  • Albert49
    replied
    Originally posted by Delendog View Post

    It was off the loan total. If loan was 100K then 90K would be used as the loan value to take into the tax calculations.
    Delendog, that was how mine was done also , Tollo's comment "10% of the expenses I submitted, without receipts, was allowed against the settlement." suggested something else.

    Leave a comment:


  • Delendog
    replied
    Originally posted by Albert49 View Post

    Can you clarify 10% of the expenses ? If your expenses for a year were £5,000, and the settlement figure for that year was £20,000, , was you final settlement figure for that year £19,500 ( £20,000 - £500 (ie 10% of £5,000) ) ?
    It was off the loan total. If loan was 100K then 90K would be used as the loan value to take into the tax calculations.

    Leave a comment:


  • Albert49
    replied
    Originally posted by tollo View Post
    I asked if I could claim expenses against a settlement figure and was told to submit them. 10% of the expenses I submitted, without receipts, was allowed against the settlement. I was told this was the maximum permitted.
    Can you clarify 10% of the expenses ? If your expenses for a year were £5,000, and the settlement figure for that year was £20,000, , was you final settlement figure for that year £19,500 ( £20,000 - £500 (ie 10% of £5,000) ) ?

    Leave a comment:


  • tollo
    replied
    I complained to HMRC that their delays and inaction meant that I would miss their imposed deadline last year, complaint was upheld and I could settle on 2017 terms. Subsequent to this I asked about expenses and submitted them as detailed in previous posts. Years involved were 2013 and 2014.

    Leave a comment:


  • nickyboyc
    replied
    Can I also ask what years you are settling and under what terms? 2020 Terms?

    Leave a comment:


  • tollo
    replied
    I claimed for mileage, working away from home, using the HMRC mileage figures and temporary accommodation costs i.e.weekly rent.

    Leave a comment:


  • nickyboyc
    replied
    Out of interest what sort of expenses were incurred?
    I'm guessing it will be the case for most people that receipts will no longer be available for these time periods back.

    Leave a comment:


  • tollo
    replied
    I asked if I could claim expenses against a settlement figure and was told to submit them. 10% of the expenses I submitted, without receipts, was allowed against the settlement. I was told this was the maximum permitted.

    Leave a comment:


  • ssbahra
    replied
    Hi All, I need help with settlement with HMRC. Did anyone have their expenses accepted by HMRC? If so, can you please PM me.
    Thanks.

    Leave a comment:


  • Delendog
    replied
    Originally posted by Krung Thep View Post
    It's not published anywhere because it doesn't exist. I believe everyone has the opportunity to make a counter offer to HMRC when settling. That is what I did, giving HMRC a breakdown of my expenses incurred for the duration of my contract which included mileage, accommodation and subsistence allowances for working away from home.

    What HMRC were prepared to concede on expenses was roughly a 14% deduction on settlement offer. My expenses were greater than that and they didn't provided me with a breakdown of how they arrived at their figure. I refused settle and to this day I have not handed over a penny to anyone. Best advice anyone can take is use your own judgments and instincts rather than getting it from anyone else. That includes tax specialist and advisors, paid or otherwise.
    I think it evolved, some people asked for it and showed proof and some caseworkers accepted that. More people got to hear more people asked for it and said others had it. probably then got to the point that HMRC just accepted it at a 10% value for anyone who asked as that was easier for them than going through loads of expenses details that people would send in.

    Leave a comment:


  • Krung Thep
    replied
    Originally posted by nickyboyc View Post
    Hi All,

    I'm posting a fresh thread for the benefit of those who still have something to settle with HMRC.

    I recently found out that some individuals when settling with HMRC were allowed to deduct 10% of their loans and salary for each tax year being settled.

    My question to anyone who utilized the 10% expenses deduction is how did you know this 10% deduction of loans and salary as an expense was even an option? I've checked the November 2017 settlement terms and there is no mention of this there and neither on the 2020 terms. I asked HMRC about this and they told me it was up to each individual to make their own expenses claim request which I did not. Is this 10% expenses deduction published anywhere? Surely benefitting from this 10% is not dependent on being on a forum?

    I've been through years of the propaganda of HMRC not negotiating and the settlement terms are the settlement terms so have been completely brain washed.
    It's not published anywhere because it doesn't exist. I believe everyone has the opportunity to make a counter offer to HMRC when settling. That is what I did, giving HMRC a breakdown of my expenses incurred for the duration of my contract which included mileage, accommodation and subsistence allowances for working away from home.

    What HMRC were prepared to concede on expenses was roughly a 14% deduction on settlement offer. My expenses were greater than that and they didn't provided me with a breakdown of how they arrived at their figure. I refused settle and to this day I have not handed over a penny to anyone. Best advice anyone can take is use your own judgments and instincts rather than getting it from anyone else. That includes tax specialist and advisors, paid or otherwise.

    Leave a comment:


  • Settling with HMRC - 10% off loans and salary as an expense

    Hi All,

    I'm posting a fresh thread for the benefit of those who still have something to settle with HMRC.

    I recently found out that some individuals when settling with HMRC were allowed to deduct 10% of their loans and salary for each tax year being settled.

    My question to anyone who utilized the 10% expenses deduction is how did you know this 10% deduction of loans and salary as an expense was even an option? I've checked the November 2017 settlement terms and there is no mention of this there and neither on the 2020 terms. I asked HMRC about this and they told me it was up to each individual to make their own expenses claim request which I did not. Is this 10% expenses deduction published anywhere? Surely benefitting from this 10% is not dependent on being on a forum?

    I've been through years of the propaganda of HMRC not negotiating and the settlement terms are the settlement terms so have been completely brain washed.

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