BN66 - Time to fight back!!!

[smalldog]

maybe its worth its own thread. I would also ask montp who obviously watch this board to let us know when we can have some form of comms on their plans? dont expect a ful disclosure of any battle plans just a date by whch we can have some news....thanks

[DonkeyRhubarb]

Interest rate is, I believe, "only" 7.5%.

http://www.hmrc.gov.uk/rates/interest-late.htm

Interesting. I was going by one of their snotty letters I have sat in front of me dated 19th March 2008 stating that "Interest is currently running at 8.5% per annum on tax paid late". Perhaps they have reduced the rate since then. Either that or the b*stards were lying to scare us even more! Nothing would surprise me.

I had to laugh when I read smalldog's post. I don't think words like "justify" or "fair" are in HMRC's vocabulary

[smalldog]

donkey, how can it be payable. Surely only monies are due that appear on your statement of account. Now dont know about u guys but Ive never had any monies owing on my statement of account from HMRC, so how on earth can they charge interest on a notional debt?? it says interest on LATE payment, we are not late, i have nevr received any bill, it only becomes payable at all once BN66 becomes law (if it does) and surely interest is accumulated from THAT DATE only....

[DonkeyRhubarb]

donkey, how can it be payable. Surely only monies are due that appear on your statement of account. Now dont know about u guys but Ive never had any monies owing on my statement of account from HMRC, so how on earth can they charge interest on a notional debt??

Here is an extract from their letter of 19th March 2008. Their intentions seem pretty clear to me.

--------------------
In the Budget the Government announced proposals to introduce legislation to retrospectively put it beyond doubt that claims such as yours are invalid.

The consequence of the announcement is that assuming the proposals become law, the share of the income arising in the Partnership(s) will be chargeable on you for every year in which such income arose or arises.

As the additional liabilities that are due will attract interest you may think it is appropriate now to make a payment on account of the additional duties that are due. Please note that as this is a share of income from a partnership, Class 4 National Insurance Contributions will be due in addition to income tax. Making a payment on account now will act to reduce the interest charge that will be due once the final liabilities are established. Interest is currently running at 8.5% per annum on tax paid late. Interest will be chargeable from the original due date(s) for each year and not from the date the proposals become law.

[smalldog]

donkey, not being funny but they can say anything, doesnt mean it will stand up in a court....lets see...

[DonkeyRhubarb]

donkey, not being funny but they can say anything, doesnt mean it will stand up in a court....lets see...

Absolutely, and I wouldn't trust the b*ggers as far as I could throw them.

For instance, in the letter dated 19th March, they clearly lied about the interest rate since the 8.5% rate only applied from 6 Aug 07 - 6 Jan 08. At the time they wrote that letter it had been 7.5% for over 2 months.

I would love to see Montpelier get them in court and give them a damn good kicking. Brillo is right to describe them as "bully boys", that's what they are bl*ody thugs!

[malvolio]

Sorry, but I still think you're deluding yourselves. You are going to get a tax bill with interest, and it's up to you to pay it or challenge it. The retrospection angle has been thrown out, the Finance Bill will go ahead, HMRC believes you have not paid the right amount of tax for some years, and they quite rightly want it paying now. Their advice to pay on account (which monies are honestly accounted for and returned with interest if you have overpaid for any reason) is both fair and actually a pretty good idea since it at least demonstrates a degree of good faith that you're going to need when you're in front of the Specials.

Also, has it not occurred to you that you've been paying the scheme owners to operate the damn thing on your behalf, and you're reduced to asking for updates on public boards? No chance at all they're simply protecting their own position vis-á-vis their own status as IOM Tax Exempt company and leaving you guys out in the cold, is there...? Surely not.

[DonkeyRhubarb]

Sorry, but I still think you're deluding yourselves. You are going to get a tax bill with interest, and it's up to you to pay it or challenge it. The retrospection angle has been thrown out, the Finance Bill will go ahead, HMRC believes you have not paid the right amount of tax for some years, and they quite rightly want it paying now. Their advice to pay on account (which monies are honestly accounted for and returned with interest if you have overpaid for any reason) is both fair and actually a pretty good idea since it at least demonstrates a degree of good faith that you're going to need when you're in front of the Specials.

Also, has it not occurred to you that you've been paying the scheme owners to operate the damn thing on your behalf, and you're reduced to asking for updates on public boards? No chance at all they're simply protecting their own position vis-á-vis their own status as IOM Tax Exempt company and leaving you guys out in the cold, is there...? Surely not.

I can understand why you would think paying on account is a "pretty good idea".

However, this is not good advice.

The sensible thing to do is to buy a CTD. This protects you from interest penalties, retains your control over the money, and does not disclose your hand to the Revenue.

[tendo71]

The deal from Tim Warr will still be there in a month's time

Who is Tim Warr and what deal is it?

BTW - I was with MP for several years and will and potentially owe a six figure sum. I am prepared to wait for a few more weeks to see what MP do but I am not confident at all.

Cheers

[malvolio]

The sensible thing to do is to buy a CTD. This protects you from interest penalties, retains your control over the money, and does not disclose your hand to the Revenue.

Assuming you are in the wrong. If you are in the right, you lose out. Think on...