BN66 - Time to fight back!!!

[BolshieBastard]

from montp :-

In respect to the recent HMRC letter, it remains our opinion that the retrospective introduction of tax legislation is contrary to the Human Rights Act and we will now actively pursue a challenge to this specific legislation via a request for a Judicial Review. We are currently consulting with Tax Counsel on this point and will revert to you as soon as possible.

In the meantime we advocate no individual response to this letter but for contractors to wait for the closure notices to be issued. Please let us have copies of the closure notices as a matter of urgency as we only have 30 days to appeal and apply for the postponement of the tax.

We will resist any attempt by HMRC to refuse the application to postpone tax.

If you have not already done so, please let us have a copy of the HMRC letter.

So, do MP want me (and everyone else) to send a copy of the recent letter from HMRC regarding DTA for 2006 / 07 ie the one where they mention jeopardy assessments or the 'closure notices'?

Im confused!

[BrilloPad]

So, do MP want me (and everyone else) to send a copy of the recent letter from HMRC regarding DTA for 2006 / 07 ie the one where they mention jeopardy assessments or the 'closure notices'?

Im confused!

Do you have 1 letter or 2? Personally I send a scan of everything I get from HMRC - to the person I mentioned in the PM!

But judging from the montp letter it is the closure notices that are more important.

[BrilloPad]

Hi Brillo.

Thanks for your recent intervention.

While I agree MP may be between a rock and a hard place right now, I feel this is of their own making due to the lack of info sent to people. Believe it or not, it was only because I stumbled across this forum and thread that I found out about BN66 and MP's 'information.'

Hopefully, MP will now issue clear instructions about the options open to us. They are supposed to be tax management experts so I want to hear their advice (and not the 'sit tight' stuff, either)

About 300 people were emailed with a link to this thread. Good to have you on board - and to any lurkers out there.

montp have found, like f4j, that the more they try to communicate with people the worse it gets. f4j eventually went to military communications (to match the rest of the campaign!)

perhaps we can list the options again (I know DR will correct my many mistakes!) :-
1. If you have the money get a CTD (unless you are better off in a high interest account)
2. sit tight (sorry but sit tight is an option)

This was never going to be an easy ride! HMRC will bully and threaten all the way.

[BolshieBastard]

I've only got one letter from HMRC (this morning). It mentions submitting a revised 2006 - 07 SA which isnt appropriate to me and the jeopardy assessment.

I havent received any 'closure notice' which I take to be a statement of how much tax liability is owed. Is this assumption wrong?

[TAF4]

Guys.
I've been lurking for the last 100 pages but life is getting serious now. I have to agree with Brillo. MP are between a rock and hard place right now. Whatever resonse they provide to the players will be available to Hector. I'm sure there are 'Clients' of MP that are Hector in disguise Hello Alan! So the less said the better. My take on it is to look after yourself from here on in and leave MP to protect their cash cow. Noise from us can only be a distraction to them. How do I provide an attachment? - my BN66threat letter is available as a pdf if anyone wants to see it. apparently 1600 of them went out. Alan (Brannigan) HAS been a busy boy.

[DonkeyRhubarb]

I've only got one letter from HMRC (this morning). It mentions submitting a revised 2006 - 07 SA which isnt appropriate to me and the jeopardy assessment.

I havent received any 'closure notice' which I take to be a statement of how much tax liability is owed. Is this assumption wrong?

HMRC will be sending the closure notices out in the next few weeks.

[BolshieBastard]

Can anyone tell me what the difference is between a CTD and 'making a payment on account' and how does one make a POA?

[DonkeyRhubarb]

Can anyone tell me what the difference is between a CTD and 'making a payment on account' and how does one make a POA?

Certificate of Tax Deposit
Instead of putting your money in a Savings Account, you can make a tax deposit. This has the effect of stopping any further interest accruing. However, just like a savings account, you can withdraw the money at any time (eg. in an emergency). The downside is that if you don't need to use it to pay a tax bill (ie. if we win), then it doesn't pay much interest (1 or 2%).

Supposedly HMRC have no knowledge of tax deposits, so making a deposit does not reveal your hand.

Payment on Account
You make a payment on account to HMRC, and this effectively settles your bill. Unlike a CTD, you won't be able to touch the money once you have "surrendered" it. You would get the money back if HMRC ever concede defeat, in which case they would repay interest that would be higher than you would get with a CTD.

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I have chosen to take out a CTD.

[DonkeyRhubarb]

HMRC Advice

In all the letters I have received from HMRC they advise making a payment on account. For instance, in the latest letter they say:

As the additional liabilities attract interest on a daily basis you should pay the full amount now. If for any reason you are unable to pay in full you should make payment on account of as much as you are able because this will stop interest continuing to accrue on the amount of the payment.

Oddly enough, they don't mention a CTD which would have the same effect of stopping further interest accruing, and yet this is promoted on their own website:

http://www.hmrc.gov.uk/howtopay/cert_tax_deposit.htm

Draw your own conclusions!

[silver_lining]

Thanks DR.

WRT to the CTD, it suggests "HMRC will accept Deposits" which suggests the CTD can be part thereof of the total amount but still stop the interest accruing.

So just wondering why one would not pay in a trivial amount to stop interest and just invest your own money elsewhere high interest account or investments?

SL