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APN or CLSO - What to accept ?

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    APN or CLSO - What to accept ?

    Hi guys,

    I have now received both offer letters CLSO and APN and both offering more or less the same figure. Any recommendation which one to accept?

    Regards,
    Noble

    #2
    They are completely different propositions and only you can decide which is most appropriate to your circumstances.

    As an aside it must be a tiny amount for them to be similar as APN doesn't include interest?

    Comment


      #3
      Originally posted by nabeelfarid View Post
      Hi guys,

      I have now received both offer letters CLSO and APN and both offering more or less the same figure. Any recommendation which one to accept?

      Regards,
      Noble
      AAARGGGGHHHHHHHHHH

      You cannot "accept" an APN. You pay it or not. It DOES NOT SETTLE your tax position. It is a payment on account of a final liability that you still have to agree. Paying the APN DOES NOT constitute agreement.

      Agreeing your position is a choice of:

      CLSO - uncertain and a lot of tax (my opinion is that this is not good)
      Litigation - long and expensive and uncertain (needs large numbers really)
      Negotiation - long and uncertain but less expensive (large numbers are better)
      Best Forum Adviser & Forum Personality of the Year 2018.

      (No, me neither).

      Comment


        #4
        Originally posted by webberg View Post
        AAARGGGGHHHHHHHHHH

        You cannot "accept" an APN. You pay it or not. It DOES NOT SETTLE your tax position. It is a payment on account of a final liability that you still have to agree. Paying the APN DOES NOT constitute agreement.

        Agreeing your position is a choice of:

        CLSO - uncertain and a lot of tax (my opinion is that this is not good)
        Litigation - long and expensive and uncertain (needs large numbers really)
        Negotiation - long and uncertain but less expensive (large numbers are better)

        Hi Graham,

        Thanks for the quick response.

        I am not sure exactly what you mean by Negotiation here. Do you mean negotiate with HMRC in terms of how to pay like installments or something like that? And what should be the deadline for negotiation considering the deadline for both APN AND CLSO is end of september

        My concern is the deadline for both is end of September and if I don't accept either CLSO or pay APN and consider Litigation or Negotiation, then the 5% penalties will start kicking in?

        In my case the amount is around 4K as I used the scheme for a limited time during the year. So I wonder what you mean by large numbers?

        Nabeel

        Comment


          #5
          Originally posted by Dylan View Post
          They are completely different propositions and only you can decide which is most appropriate to your circumstances.

          As an aside it must be a tiny amount for them to be similar as APN doesn't include interest?
          Yes the difference is marginal but I am not sure which one to go for. What should I be considering to choose between the two so I can just put an end to this

          Comment


            #6
            Originally posted by nabeelfarid View Post
            In my case the amount is around 4K as I used the scheme for a limited time during the year. So I wonder what you mean by large numbers?
            Large numbers of PEOPLE (to have any kind of negotiating power)
            Help preserve the right to be a contractor in the UK

            Comment


              #7
              Originally posted by nabeelfarid View Post
              Hi Graham,

              Thanks for the quick response.

              I am not sure exactly what you mean by Negotiation here. Do you mean negotiate with HMRC in terms of how to pay like installments or something like that? And what should be the deadline for negotiation considering the deadline for both APN AND CLSO is end of september

              My concern is the deadline for both is end of September and if I don't accept either CLSO or pay APN and consider Litigation or Negotiation, then the 5% penalties will start kicking in?

              In my case the amount is around 4K as I used the scheme for a limited time during the year. So I wonder what you mean by large numbers?

              Nabeel
              If you decide not to accept the CLSO you need to pay the APN or risk a penalty.

              You can make a representation against the APN. I have posted previously how to do this. Alternatively you can go to an adviser (yes that includes me, but there are others) and they will do this for you. They will charge a fee.

              That representation is unlikely to result in the APN being withdrawn permanently. If may be delayed, perhaps reduced but will still need to be paid.

              You can ask HMRC for time to pay (or your adviser can if you wish).

              If you pay the APN and wait for the litigation result, forget a September deadline. Perhaps 5 to 7 years. It's up to you whether you contribute to a fighting fund for this. If there is a litigation result that is relevant to the scheme you used, it will be applied by HMRC. That might be more than the CLSO or less.

              If you pay the APN and decide to negotiate, again there is no deadline. You can start the process when you like either as an individual or as part of a group. You don't NEED a professional adviser but I recommend you do get one as this is a complicated area. Tax adviser time varies from perhaps £100 to £1,000 an hour - depends on many factors. How many hours to get a settlement position? I don't know. I'd guess at 3 for an initial "get up to speed", 15 for say 5 HMRC meetings, 2 to check any final number. Minimum 20 hours.

              Being in a group shares the 3 and 15 above.

              I'd RECOMMEND, indeed INSIST that you spend a few hours this week going over the posts and threads here and immerse yourself in it. Some of the questions here are good ones, some of the advice is decent. (Some questions and advice is not so be selective).
              Best Forum Adviser & Forum Personality of the Year 2018.

              (No, me neither).

              Comment


                #8
                4k is a no brainer

                Comment


                  #9
                  Originally posted by bluemonkey71 View Post
                  4k is a no brainer
                  In what sense?

                  Comment


                    #10
                    Originally posted by nabeelfarid View Post
                    In what sense?
                    Pay the APN. 4k is petty cash.

                    Comment

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