No To Retro Tax - Ongoing battle against S58 FA2008

[mrkitchen]

That is if you trust the maverick organisation that is HMRC.

If the APN money was held in escrow I would be happier about parting with it (assuming I can raise the wedge in the first place). On the other hand with APN money being held by the exchequer I'm not sure I trust them to give any of it back under any circumstances.

Obviously I don't trust them, in their many circulars, updates, warnings, etc isn't it mentioned anywhere ?

[elpinar]

Capped at 15%.

the BA in me has to ask if it is 3 *5% compound - as then is is 15.7625 % not 15 !!!!!
or do we not know

[screwthis]

Negotiations

DR,

Recently you said that they had formally requested a meeting with NTRT.

Do you have any update about whether this is still on the cards and if so when this might be?

[patbikeruk]

Another Silly Question..... Can I deduct any amounts I have on account from my APN's?

I have 2 APN's .....

They demand X amount but I have a large amount of Tax Y from recent years on account which they will not pay back to me.

Do I still need to pay X or can I deduct Y from X and pay the difference?

Thanks

Patbikeruk

[Morlock]

I have 2 APN's .....

They demand X amount but I have a large amount of Tax Y from recent years on account which they will not pay back to me.

Do I still need to pay X or can I deduct Y from X and pay the difference?

Thanks

Patbikeruk

Refer to
https://www.gov.uk/government/upload...cc-fs24_1_.pdf

"If there is a current compliance check and you do not pay the full amount shown in your accelerated payment notice by the date it is due, we may charge you a penalty."

[slatt]

the BA in me has to ask if it is 3 *5% compound - as then is is 15.7625 % not 15 !!!!!
or do we not know

if its the same as the normal interest that HMRC applies (and i believe it is), then it's just simple interest - they don't tend to use compound interest as far as i'm aware

[TheHat]

When I 'bought' my CTD, they wrote to ask me which tax debt or dispute I wanted the CTD to be recorded against. I read in one of these threads not to tell them what the 'debt' was so wrote and told them Im not disclosing that (at that time).

Didnt they do this to you? If you didnt tell them which tax debt the CTD was for, it isnt against any liability they officially have.

I'm not appreciating something with CTDs, which is likely to say more about me than these very helpful threads. I have a couple of CTDs, but as yet they are not associated with any alleged tax debt (my APN is probably on its way in the post). My preference is not to tell the relevant HMRC dept' about my CTDs until the APN deadline and it has to be paid prior to incurring penalties.

What I'm not appreciating is the position on the interest with the alleged tax debt. So my question. At the point I tell HMRC about the CTDs and use them to pay the APN, will the debt interest be re-calculated from the point I purchased the CTDs, or will the interest be re-calculated from the point I actually informed HMRC that I want the CTDs associated with the alleged tax debt?

I should ask my 'specialist' accountant, but I get more sense on this forum.

[webberg]

the BA in me has to ask if it is 3 *5% compound - as then is is 15.7625 % not 15 !!!!!
or do we not know

15% simple.

[webberg]

if its the same as the normal interest that HMRC applies (and i believe it is), then it's just simple interest - they don't tend to use compound interest as far as i'm aware

It's not interest at all, it's a penalty.

can't charge interest because there's no appeal available.

[webberg]

I'm not appreciating something with CTDs, which is likely to say more about me than these very helpful threads. I have a couple of CTDs, but as yet they are not associated with any alleged tax debt (my APN is probably on its way in the post). My preference is not to tell the relevant HMRC dept' about my CTDs until the APN deadline and it has to be paid prior to incurring penalties.

What I'm not appreciating is the position on the interest with the alleged tax debt. So my question. At the point I tell HMRC about the CTDs and use them to pay the APN, will the debt interest be re-calculated from the point I purchased the CTDs, or will the interest be re-calculated from the point I actually informed HMRC that I want the CTDs associated with the alleged tax debt?

I should ask my 'specialist' accountant, but I get more sense on this forum.

The CTD is just a credit you can apply to your tax account in any way you see fit. Common sense says that you apply them to the earliest liabilities first as this stops interest running on them.

You will not know your final liability until the dust settles - several years away.

In the meantime, the APN needs to be paid (perhaps delayed and reduced - both possible) and failing to do so will will bring a penalty which may be payable regardless of whether the final liability is more or less than the APN. (unclear).

Interest on unpaid liability is currently 3% pa.

Penalty for non payment of APN is 15% in a year, or around 5 years' worth of interest.

So, you don't know your final liability and will not for a while, but you do know that failing to pay the APN brings a 15% penalty.

Common sense says use it to pay the APN.

I think I could reduce this to a spreadsheet - I'll try.