interesting debate on the merits of the loan charge and its retroactive and retrospective measures. the member for Mole Valley may have had it succinctly
how much interest were you paying NONE
when were you going to pay the loan back NEVER
if it looks like a duck and quacks like a duck...
the problem with these schemes was the heavy pressure to enter in those that did exert pressure must be held to account
Nick
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Well, there have been leaks from the Cabinet Rooms for quite a while now so not surprising.
At least the water will be good for the ducks.
I think there is probably a mixture of those who knew what they were doing and those who entered these schemes under pressure from the promotors, not aware of the potential consequences. Tax returns have been filed declaring the scheme year on year and HMRC have done nothing. HMRC's approach is one size fits all. Going back 20 years - are they having a laugh?
It never rains but it pours. Commons suspended for the day.
Deleted as Justin has already posted this to
https://www.accountingweb.co.uk/any-answers/damning-appg-2019-loan-charg...
The ironic part is that (I believe) the 'water' was in fact sewage and it rained down on members of the Press.
Payback time I think for one of my clients who was convinced that these schemes were no brainers and all of his acquaintances down the the Golf Club were doing them. I managed to persuade him that there was something fundamentally wrong with these schemes and fortunately he did not proceed so I guess I will have saved him tens of thousands of pounds as a result.
He might get the point when the membership of the Golf Club drops dramatically as other members find that they can no longer afford the fees.
I must admit that I had little sympathy for the 'victims' of this, until I read about the case of a fairly junior worker in the NHS. She had been on PAYE for several years when she was switched to a loan scheme, which she neither requested nor understood. The lady not unreasonably assumed that as it was run by a state body it was completely legit. In fact, I am not even sure that she had the thought process at all!
The use of these schemes by the public sector particularly needs to be investigated.
It will not be possible to separate out the 'lambs' from the 'lemmings', ie those that were led, versus those that freely and knowingly jumped. A pragmatic and realistic solution is required, and bankrupting several thousand taxpayers isn't it.
What I don’t understand about the public sector ones is why the tax isn’t due from the employer.