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Applying a CTD to an Appealed EBT Amount

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    Applying a CTD to an Appealed EBT Amount

    Hello All,

    I have recently funded a CTD and wanted to apply this against a figure which i am disputing, i received the following today, and i cant understand any part of it...

    I am awaiting some answers to some questions, especially around if the CTD stops interest accruing, as this is not stated below.

    I have been in contact with the CTD Team and have been advised that there is a problem with using the CTD without raising a charge/'bill' to set it against. I understood that the CTD would be used against the assessment but have now learnt that whilst the CTD can be held on account it will sit unallocated until the charge is released.

    Having had a discussion with XXXX YYYY (in the CTD Team) it would appear that the best way forward would be:

    • To leave the assessment under appeal but release the stand over which will bring the assessment back into charge - the CTD can then be set against it.
    This does mean that the interest from 31 January 2012 will be calculated and will show on the Self Assessment Statement.

    • An interest objection will need to be raised in order avoid the Debt Collection Team starting their process for collecting the interest. However, because of your appeal and your objection to the interest charge you have asked not to pay the interest charge at this time. I can note my (your) records so that no collection proceedings should be taken in respect of the interest charge for as long as your appeal remains open. The interest will show as 'collection suspended' on the Self Assessment statement. But please be aware that on determination of the appeal, interest will be payable on the final figure of tax found to be due. This will run from the original due date to the date that the underlying tax was paid.

    If you agree that I should proceed I can release the assessment, suspend the interest and request the allocation of the CTD this week, which - I'm told - will take 10 -14 days to allocate as HM Treasury have to do their part.

    I will also send you a letter (by email & hardcopy) confirming the amount of interest that is suspended pending the appeal being closed.

    #2
    A CTD is a deposit with HMRC.

    It can be used against any tax liability.

    A tax liability can arise only when you have an assessment or a self assessment statement.

    An assessment can be appealed against and the tax postponed until any dispute is settled.

    If that happens, you have no "liability" (actually a liability that has been postponed) and therefore nothing to use the CTD against.

    The letter suggests that you can ask for the postponed tax to be NIL and that creates a tax liability on your account that the CTD can be used against.

    The core issue above however appears to be interest on the tax.

    If the assessment was for say 2006/07 and is £100, then the interest due on that might be around £40 by now.

    If your CTD is £100, then releasing the postponement and using the CTD clears the tax liability of £100 but leaves the £40 interest due. The officer seems to suggest that they will agree to hold that in suspense so that the collection arm of HMRC (DMB) won't send the bailiffs around.

    Alternatively, you could calculate that releasing say £70 of the tax would, with interest, be £100 and use the CTD in that way. Less efficient perhaps and HMRC would struggle with the admin, but possible.
    Best Forum Adviser & Forum Personality of the Year 2018.

    (No, me neither).

    Comment


      #3
      CTD delivery lead time

      Does anyone have experience of how long it takes HMRC to actually issue the CTD? I submitted a payment over a month ago which has been cashed but no certificate yet......I suppose I should not be surprised

      Comment


        #4
        Originally posted by energyonlineadmin View Post
        Does anyone have experience of how long it takes HMRC to actually issue the CTD? I submitted a payment over a month ago which has been cashed but no certificate yet......I suppose I should not be surprised
        Mine took 6 weeks to arrive. I chased them twice and they said they were having computer issues...

        Comment


          #5
          Originally posted by energyonlineadmin View Post
          Does anyone have experience of how long it takes HMRC to actually issue the CTD? I submitted a payment over a month ago which has been cashed but no certificate yet......I suppose I should not be surprised
          Averages 6 to 8 weeks.

          Also you can't call them easily. Letter/fax yes, but they have an aversion to the telephone.
          Best Forum Adviser & Forum Personality of the Year 2018.

          (No, me neither).

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