BN66 - Time to fight back!!!

[DonkeyRhubarb]

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.

Thanks Brillo. I will also copy this on the News thread.

[TheGadgetMan]

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.

BP - how did you receive this missive from MP?...are they communicating this to members individually?...

because if they aren't, then they should be...I have just received an email from a long-standing member of the scheme who it seems didn't even know about BN66!!!...he's just received the latest letter from HMRC...

...but at least we now know that MP are taking this to JR and possibly ECHR...

[TheGadgetMan]

methinks its now time to get a CTD...

dammit, that means I'm now going to have to start making mortgage payments...

[DonkeyRhubarb]

methinks its now time to get a CTD...

dammit, that means I'm now going to have to start making mortgage payments...

Before you get a CTD, it might be worth doing a calculation as to whether you are better off sticking with the offset mortgage. Here are a few figures to play around with:

Assume you owe £100k in tax + £40k in accrued interest penalties.

HMRC charge 7.5% but only on the £100k (simple not compound). So first off, you "only" need to take out a CTD for £100k (not £140k). There is no point putting the extra £40k in a CTD because it pays a cr*p rate of interest.

If your mortgage rate is over 6.5%, then you would only get marginal benefit by taking out the CTD and if we eventually won then you would get to keep all the interest that you have offset.

I have taken out a CTD but that's because I don't have an offset mortgage and, although you can get 6.5% on savings, after tax there is quite a big shortfall between the net savings rate and what HMRC charge.

Bottom line is that getting a CTD may not always be as clear cut as it seems.

[redkieran]

I do find this very annoying though - why aren't MP contacting us about what to do? This is definitely not the right way of them spreading info!

[DonkeyRhubarb]

I do find this very annoying though - why aren't MP contacting us about what to do? This is definitely not the right way of them spreading info!

What Brillo posted was the content of a letter that is being sent out to all of us. However, they know a lot of people read this thread so they thought we might appreciate getting the info before the weekend.

That is also why I have put it up on the BN66 - News thread.

They understand everyone is worried and I think they recognise that they need to do a better job of communicating from now on.

I have debated the value of this thread recently but if it stops everyone bombarding MontP with the same questions then I think it serves a purpose. I for one would rather they concentrate on getting the accounts sorted and preparing for the JR.

[BrilloPad]

And another thing :-

"We don't intend to submit amended 2006/07 ITR's. Management team feel they were completed correctly and we will not amend them."

I dont have to post anything - how about a thank you?

[BrilloPad]

And one more montp comment - before I make my own comment :-

Regarding Jeopardy Assessments, apparently it can only be one or the other - closure notice or jeopardy assts. montp thinks jeopardy assts are a very aggressive stance for them to take and he can't see how they would win. Any attempt on the part of HMRC to deny postponement of the tax due would mean that they will have to seek approval from the commissioners to do this. Jeopardy assessments are usually only issued when they think there will be a loss to the crown of Income Tax..... an initial point of our argument against that will be - "well, you put the tax in jeopardy yourself by not closing this loophole back when ye found out about it!!"

The discussions with counsel are still ongoing but at least we know they are happening.

[BrilloPad]

Now for a personal post :-

My friend at montp was in at 6:30am yesterday and left at 11:30pm - solidly answering emails. When they replied to one they got back a reply "why aren't you doing my accounts?"!!!!!!!!!!

So montp are damned if they reply and damned if they don't!!!!!!!!

If when they try to communicate it just leads to people wasting their time - then why bother?

This is starting to sound like fathers 4 justice - you try to help others and get a knife in the back.

Much more of this and I am going to withdraw from this thread - or join Mal.

IMO montp are doing a great job. They are fighting this like a military campaign - info on a need to know basis. The fact that people keep making posts encouraging Mr Brannigan (hello ) dont help either.

I promise that come the time - **IF** we lose - there will be retaliation and retribution. it probably wont happen. please can we wait?

BP
PS to anyone from montp reading this - keep fighting!

[BolshieBastard]

Now for a personal post :-

My friend at montp was in at 6:30am yesterday and left at 11:30pm - solidly answering emails. When they replied to one they got back a reply "why aren't you doing my accounts?"!!!!!!!!!!

So montp are damned if they reply and damned if they don't!!!!!!!!

If when they try to communicate it just leads to people wasting their time - then why bother?

This is starting to sound like fathers 4 justice - you try to help others and get a knife in the back.

Much more of this and I am going to withdraw from this thread - or join Mal.

IMO montp are doing a great job. They are fighting this like a military campaign - info on a need to know basis. The fact that people keep making posts encouraging Mr Brannigan (hello ) dont help either.

I promise that come the time - **IF** we lose - there will be retaliation and retribution. it probably wont happen. please can we wait?

BP
PS to anyone from montp reading this - keep fighting!

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)