BN66 - Time to fight back!!!

[smalldog]

Ive worked out my own liability and Im in for a shade over £100k including interest etc.....not quite as bad as I thought....in a sick kind of way Im actually pleased, thought it might be more like £150k?!!???!!!

[DonkeyRhubarb]

Ive worked out my own liability and Im in for a shade over £100k including interest etc.....not quite as bad as I thought....in a sick kind of way Im actually pleased, thought it might be more like £150k?!!???!!!

Hope you don't mind me using your figures as an illustration. PM me if I've got it wrong and I'll ammend accordingly.

Assuming you were in the scheme a few years ago then I'm guessing that your tax liability is about 75k and interest 25k.

HMRC are currently charging 7.5%, so to stand still on 100k liability, you need to put 7.5%*75k (approx 6k) on one side each year for however long the court cases drag on for. For example, in 2 years you would owe around £112k.

I think it's worth bearing this in mind since unless you get a CTD the debt is growing a bit every month.

If you can save it's worth starting now as it could be many years before this is resolved.

[poppy01]

Hope you don't mind me using your figures as an illustration. PM me if I've got it wrong and I'll ammend accordingly.

Assuming you were in the scheme a few years ago then I'm guessing that your tax liability is about 75k and interest 25k.

HMRC are currently charging 7.5%, so to stand still on 100k liability, you need to put 7.5%*75k (approx 6k) on one side each year for however long the court cases drag on for. For example, in 2 years you would owe around £112k.

I think it's worth bearing this in mind since unless you get a CTD the debt is growing a bit every month.

If you can save it's worth starting now as it could be many years before this is resolved.

I'm actually relying on this. My feeling is I'll have to pay it in the end, but i dont have it now, so if I go for an aggressive saving regime, putting the savings into ctd's, and it takes 2 years to sort out, I may be ok. My missus went sick the other day because she thought I had to pay up right now.

[DonkeyRhubarb]

Contingency Planning

I'm actually relying on this. My feeling is I'll have to pay it in the end, but i dont have it now, so if I go for an aggressive saving regime, putting the savings into ctd's, and it takes 2 years to sort out, I may be ok. My missus went sick the other day because she thought I had to pay up right now.

I'm wondering if it's worth starting a new thread to discuss worst case contingency planning. Perhaps for some people there are better options than CTDs.

For example, if you are on a high mortgage rate, it might be better to make overpayments and then remortgage if we lose. Or better still, maybe go for an offset mortgage.

The problem with regular savings is that the interest is taxable, so unless you are a non/basic rate taxpayer, you've no chance of keeping up with HMRC's 7.5%. Of course, the trade-off is that if we win you get to keep the interest whereas the CTD earns bugger all.

For those who are willing to take a risk, then you could start drip feeding money into an ISA and go for something much more aggressive. If the case drags on for several years this may have a better chance of clearing your debt, and it's tax free. Maybe some get beaten down bank shares or house builders if you are feeling particularly brave.

Anyone else have any suggestions?

[zippo]

Time scales........

Guy's,

Has any one actualy had any recent response from Montp, with any thing useful that is.

I'm thinking along the lines of there estimation on how long they think it could actualy take before a decision is made.

[helen7]

Why give the money to HMRC.....if they insist on making you bankrupt...take all your money to vegas and put it on black.

Who know's, you may win :-)

[DonkeyRhubarb]

Why give the money to HMRC.....if they insist on making you bankrupt...take all your money to vegas and put it on black.

Who know's, you may win :-)

Obviously a bit tongue in cheek but worth a thought if they would wipe you out anyway.

[smalldog]

Obviously a bit tongue in cheek but worth a thought if they would wipe you out anyway.

this might sound a bit daft in the current climate but Im not getting a CTD and leaving equity in my property portfolio.

If it does take 5 years I will be counting on a rising property market to beat the % I will owe HMRC should the worst happen. In normal circumstances it rises double digits every year...In some areas it rises double digitis a quarter!!!! For instance, even with the current slump I am seeing 4.3% growth in the last quarter for one of my properties, granted across the UK its down on average but its very regional....

PS - HALIFAX HAVE A 10% INTEREST ACCOUNT!!!! In fact just looked on their site and they now have a 12% saver account:

An even bigger rate for our savers is available now!

If you have at least £5,000 to invest into your nominated account, you could receive 12% AER on your Regular Saver.

[smalldog]

Obviously a bit tongue in cheek but worth a thought if they would wipe you out anyway.

I'd rather give it all to charity than those scum....they are only going to waste it anyway. At least then I decide what happens to it....

If you own a house with a partner can they make you sell it, surely not unless you own it outright as your partner owns half...?

[DonkeyRhubarb]

Mass Hysteria?

Serious question...

Do people still feel this discussion is serving any useful purpose or are we just whipping ourselves into a frenzy over something that's out of our control? I would hate to think that this thread was driving people to the likes of Warr & Co before we've even give MontP a fair chance.

Someone once said to me that there is no point worrying about anything that might happen in the future unless you can do something about it. When I first started this thread it was with the intention of trying to influence the Bill going through parliament. As it turned out this was a bit futile but nevertheless it was worth a try. However, we are passed this stage and there is now very little we can do to affect the outcome of the case.

I think it's sensible that people discuss contingency plans for the worst case scenario. This is an area where you can do something positive now. But is there any point in endlessly speculating about what may or may not happen in the courts?

Is it time to ditch this discussion?