BN66 - Time to fight back!!!

[DonkeyRhubarb]

I'm just very cynical about the whole thing. HMRC can freeze your bank account at any time, so why not a CTD? In the case of a bank account, you wont be given any notice, it will be done immediately (and probably electronically).

Sorry if I'm beginning to sound like Malvio.

I think it's very unlikely. Let's suppose they just targetted us, many other people with CTDs would immediately bail out. The scheme would be totally discredited, and not only would they have to repay a ton of money, no-one would touch them again in future. In effect, the government would have kissed goodbye to a cheap line of credit.

[smalldog]

Yep, but dont think by buying a CTD you are sticking one on HMRC. It all goes into the same pot be it a CTD or payment on account. You are just giving them cash they desparately need to spend on trying to drag us out of the downturn. Mr B wont be upset, doesnt matter how they get the cash as long as they get it. OK a CTD you can get back at anytime, but remember if this goes on for years and years then they too dont have to worry about paying it back for a long time yet as people who have got one are unlikely to call it in until all this is over.....

[SantaClaus]

DonkeyRhubarb, you make some very valid points, I agree the govt. would be saying goodbye to an easy line of credit if they tried anything.

....OK a CTD you can get back at anytime, but remember if this goes on for years and years then they too dont have to worry about paying it back for a long time yet as people who have got one are unlikely to call it in until all this is over.....

Smalldog, I'm actually hoping the fight through the ECHR will go on for years and years. 10 years would be a nice length of time to enjoy my house and my money before I go to the turf accountants and flush it all down the toilet.

Seriously though I have more or less given up contracting to trade the forex markets full-time. As spreadbetting doesnt attract any tax, Mr Brannigan (hello ) can kiss my Unless of course they change the rules retrospectively

[DonkeyRhubarb]

Yep, but dont think by buying a CTD you are sticking one on HMRC. It all goes into the same pot be it a CTD or payment on account. You are just giving them cash they desparately need to spend on trying to drag us out of the downturn. Mr B wont be upset, doesnt matter how they get the cash as long as they get it. OK a CTD you can get back at anytime, but remember if this goes on for years and years then they too dont have to worry about paying it back for a long time yet as people who have got one are unlikely to call it in until all this is over.....

I'm not sure I would go along with this entirely. No-one in HMRC Investigations has visibility of CTDs. At the end of the day, Mr B can only chalk it up if people settle or pay on account.

If Mr B was equally happy with people taking out CTDs then he would have mentioned them in his letters. The only method he ever suggested for preventing further interest accruing was paying on account.

[Ratican]

At the end of the day, Mr B can only chalk it up if people settle or pay on account.

What is the difference between settle and pay on account?

[DonkeyRhubarb]

Hi all,
new to the thread, been with MP about 2 years, got my letter from MP on Saturday re new scheme.

Could someone kindly summarise the benefit of a CTD on the basis that i may have, as an example only, have a to make a payment of £30k (plus interest) to HMRC.

Thanks

If you take out a CTD (for £30k) then HMRC won't charge you any more interest ie. your total liability of tax+interest will be frozen from the date of the CTD. HMRC will currently be charging you 7.5% p.a. simple interest on the £30k.

[smalldog]

I'm not sure I would go along with this entirely. No-one in HMRC Investigations has visibility of CTDs. At the end of the day, Mr B can only chalk it up if people settle or pay on account.

If Mr B was equally happy with people taking out CTDs then he would have mentioned them in his letters. The only method he ever suggested for preventing further interest accruing was paying on account.

DR, they all make their way into the bank of england accounts to be used (unwisely!) as the government see fit, doesnt matter if it comes from PAYE, NI, CTD, CT...you are still parting with your hard earned so in some ways they have won already when you buy a CTD....They hedge that you wont ever get it back and that they can pay you a miniscule % interest while they run round punting out YOUR cash to the highest bidder, Northern Rock anyone?

[TykeMerc]

I'm not sure I would go along with this entirely. No-one in HMRC Investigations has visibility of CTDs. At the end of the day, Mr B can only chalk it up if people settle or pay on account.

If Mr B was equally happy with people taking out CTDs then he would have mentioned them in his letters. The only method he ever suggested for preventing further interest accruing was paying on account.

Which is of course logical since a CTD is in effect an investment you can demand be repaid almost instantly where as a payment on account is theirs until proven otherwise.
It's to HMRC's advantage to get payments on account rather than CTD's as of course you know so there's no way they would advertise the less strong arm alternative with any vigour.

[smalldog]

Which is of course logical since a CTD is in effect an investment you can demand be repaid almost instantly where as a payment on account is their until proven otherwise.
It's to HMRC's advantage to get payments on account rather than CTD's as of course you know so there's no way they would advertise the less strong arm alternative with any vigour.

Yep totally, but it still swells their bank balance and they use it, all of it in exactly the same way banks do....They aint getting a penny out of me with which to bolster their finances...

[akan]

[QUOTE=ContractIn;615844]

If you can't wait for the assessment/closure notice from Hector, then depositing an amount equal to 1/3rd of the total trust income should stop the bulk of any further interest penalties.[/QUOTE]

I got MP to provide an illustration for me and it was not too far off the 33% mark, maybe a little higher. My CTD is now purchased albeit about 10K short but will stop bulk of the interest.

Very depressing writing the cheque so all I can do now is sit back and wait for further updates/outcomes.

I just got my calculation off MontP - the amount for me is much closer to 40% (don't have the actual trust income handy). Plus a lot of interest.

I have been on the scheme for four years now and its a lot of money - this CTD is going to be painful.......