BN66 - Time to fight back!!!

[DonkeyRhubarb]

I 100% agree if you dont have the cash you have no option - but on the mortgagee offset vs CTD argument ....

if you had a 140 mortgage that was fully offset and your rate is 5.5 - you are saving a £641 mortgage every month and you are attracting 625 interest by the dear old hmrc (on the 100k)

if your liablity is as you say 100/40 - you would only consider paying 100 on a ctd as the 40 is not attracting interest - so if you did that you would then have

140 mortgage - offset by 40 - so you would pay 446 per month on the mortgage (100 k worth) - but hmrc would no longer be adding 625 interest to your bill - instead they would be adding zero . Explain to me how you think you are better off leaving your mortgage offset – unless you feel there is no chance at all you will have to hand over the cash – in which cash you are better off leaving it as it all is – but you betting about 2.5k a year on the outcome being good?

You are absolutely right. 100k CTD + 40k offset is better than 140k offset.

However, the point I was making in the example was that the 140k offset @ 5.5% net would at least keep pace with 100k @ 7.5%. It's not the best option but some people may prefer to carry on as they are.

[DonkeyRhubarb]

http://www.hmrc.gov.uk/howtopay/ctd-interest-rates.pdf

Did anyone ever work out why 2 interest rates? Also seems odd that certificates held 3-6 months (over 100k) get more interest than certs held 6-12 months

Will Mr Brannigan(hello ) explain why please?

No, I couldn't make any sense out of it. To be honest, it wouldn't matter to me if it paid zero interest, since my main concern was to stop the liability getting any bigger.

[DonkeyRhubarb]

Important Clarification from MontP

This is not an official statement but my interpretation from a couple of conversations.

Settling is NOT the same as making a payment on account.

If you settle, then you are basically accepting that HMRC has won. You will never (I repeat NEVER) get your money back, even if MontP wins.

Making a payment on account is different, and you can still appeal against the closure notice. However, you won't see the money again until the appeals process has run its entire course and HMRC accept that we have won. The benefit over a CTD is that you would earn a higher rate of interest, which in effect is compensation for surrendering control of the money.

Mr Brannigan would love you to settle but he would also gladly accept a payment on account. I don't he think he is too fond of CTDs though.

[smalldog]

it would be great to know what to do with my £100k if I had it!

[BrilloPad]

it would be great to know what to do with my £100k if I had it!

spade and a bag of lime?

[BolshieBastard]

I've a flexible mortgage which is currently nil ie we dont have to make any repayments on it.

I havent decided whether to get a CTD, pay on account or just wait and see (which I think is the riskiest).

Will probably get a CTD when the closure notice arrives.

BTW, has anyone had one of these yet?

[BrilloPad]

I've a flexible mortgage which is currently nil ie we dont have to make any repayments on it.

I havent decided whether to get a CTD, pay on account or just wait and see (which I think is the riskiest).

Will probably get a CTD when the closure notice arrives.

BTW, has anyone had one of these yet?

I heard a whisper that not many closure notices have come in. Maybe HMRC have lost most of the files?

[SantaClaus]

I heard a whisper that not many closure notices have come in. Maybe HMRC have lost most of the files?

Lets hope they've been left on a train as per most of the government's "private" data.

[BrilloPad]

Lets hope they've been left on a train as per most of the government's "private" data.

So Mr B(hello ) could be sacked? Might replace him with a human?

[BolshieBastard]

I heard a whisper that not many closure notices have come in. Maybe HMRC have lost most of the files?

if that was the case, wouldn't that make taking a CTD obsolete?

At the mo I've only a very rough idea how much Im supposed to 'owe.' HMRC gave an estimate based on MP's draft accounts so I dont know how much to take a CTD for.