BN66 - Time to fight back: Continued

[sortednet]

Sin taxes

The government adds tax to drink, tobacco and fuel to discourage its use. It seems that to give up smoking to avoid the tax on tobacco is tax evasion by the HMRCs attitude to any avoidance setups.

Tax is used for social engineering as much as for raising revenue, especially by ZaNuLabor so it should be the case that everyone should try to reduce their tax burden according to the rules so that the social engineering can be effective.

[BrilloPad]

The government adds tax to drink, tobacco and fuel to discourage its use. It seems that to give up smoking to avoid the tax on tobacco is tax evasion by the HMRCs attitude to any avoidance setups.

Tax is used for social engineering as much as for raising revenue, especially by ZaNuLabor so it should be the case that everyone should try to reduce their tax burden according to the rules so that the social engineering can be effective.

There was a seperate thread somewhere to discuss the morality of tax paying......

[BrilloPad]

There was a seperate thread somewhere to discuss the morality of tax paying......

http://forums.contractoruk.com/gener...ighlight=moral

Just to keep this thread clean...

[Toocan]

Personally I think it would be spun to make us look bad and could even damage the JR.

I think we need to be very careful with the press.

Look at the situation with Jonathan Ross and Russell Brand. There is no doubt that was a stupid and callous act but why do you think Gordon Brown made a statement on this?

My view is that this was done in an attempt to fill the papers with that story rather than with the mess he and his crony’s have made of our country. They are expert at manipulating the press to say what they want.

Another example of this is the Osborne / Mandelson story with the Russian potential donator. Both wanted the money but which one did the press report on?

The juicy story here needs to be “Gordon’s going to take your money next”, rather than “contractors back-taxed”. The problem is that the first is a possibility, whereas the second is happening now (ie it’s news).

We can win in the courts because the judges are independent of the government and do not need to concern themselves with public opinion.

[Toocan]

Just a thought

If HMRC are successful with this retrospective change then it would be the end of tax planning. If the government can change the law retrospectively on a whim then the tax planning and avoidance industry dies. There would be no security for any company operating in the UK.

The fall out from this would be huge; Companies will have another reason to move overseas. Accountancy firms would loose a fortune – ultimately this will result in even less tax income for the UK government.

We don’t need to do anything to serious hurt the government, this is a Darwinian move, and if “successful”, it will turn and bite the government like a angry cobra.

The big accountancy and tax firms should be very concerned about BN66 – it is the thin end of the wedge.

This is a major business risk. Which means any company that operates in the UK and the USA has to apply Sarbanes Oxley Act to this risk. If anyone out there has contacts at the big accountancy firm’s maybe they should use that contact…

[harrinp1]

Does anybody know what the current HMRC Intererst rate is that is charged on outstanding balances, and also what they pay on CTD?

I'm trying to get an idea if I would be better purchased CTD's or just keeping the money in my offset mortgage account.

[BrilloPad]

Does anybody know what the current HMRC Intererst rate is that is charged on outstanding balances, and also what they pay on CTD?

I'm trying to get an idea if I would be better purchased CTD's or just keeping the money in my offset mortgage account.

Recently reduced to 6.5% from 7.5%.

AS DR said several times - NEVER put any interest owed into a ctd as not cumulative.

I should think most mortgages cost less than 6.5%?

[DonkeyRhubarb]

Falling Interest Rates

As mentioned previously, HMRC have reduced the interest rate they charge for late payment of tax from 7.5% to 6.5%:

http://www.telegraph.co.uk/finance/p...taxpayers.html

Although of course they haven't updated their own website!

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

With interest rates predicted to fall sharply over the coming months, if you are keeping money in a savings account or offsetting (variable/tracker mortgage), you need to watch that the rates don't fall too far behind what HMRC charge.

[TheGadgetMan]

Closure Notices

I know Ive alluded to this before but I'm not sure that Ive seen any advice on how to proceed...

I know that a significant number of Closure Notices have now been issued and from all accounts MP are dealing with them efficiently...

Ive got 3 years under investigation...Partnership Accounts were all submitted back in July...but I have as yet to receive any correspondence from HMRC...

the issue is how do I know whether my CNs have been issued or not?...and if they have been sent, how do I know if they've been lost in the post?...the fact is that I don't know...

is it advisable to contact MrYouKnowWho's office and ask them if the CN has been issued?...I know its the local HMRC offices that are issuing them but the central office should know...I cant see the point in bothering the local offices...

some of you might argue whether its prudent to be ASKING for a Closure Notice...but if I know its on its way anyway, then I would rather keep on top of things...

on a separate note...500 people phoning MrYouKnowWho and asking, 'OI!!! Where's my Closure Notice - I want to appeal!!!' might get the message across in no uncertain terms thats he's in for a fight...childish I know, but heyho....

[harrinp1]

As mentioned previously, HMRC have reduced the interest rate they charge for late payment of tax from 7.5% to 6.5%:

http://www.telegraph.co.uk/finance/p...taxpayers.html

Although of course they haven't updated their own website!

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

With interest rates predicted to fall sharply over the coming months, if you are keeping money in a savings account or offsetting (variable/tracker mortgage), you need to watch that the rates don't fall too far behind what HMRC charge.

Thanks for the information. My current offset mortgage is 6.6% so I am better to leave the money(not that it's my money!) where it is for now.

I suppose I need to take into account in my calculations the outcome or the MP challenge. If I buy CTD's then I will be paying 6.6% interest as I have borrowed the money from my mortgage account. If MP win then I cash these back in and put the money back into my mortgage account and I have lost all the money I've had to pay in interest on the money I borrowed from my offset account.

If I just keep the money in my offset mortgage then I'm not having to pay any extra interest. If MP win then I am no worse off that I would have been before, but if we loss then I will have to pay the tax man what I owe plus interest at 6.5%.

So even if the rate on my mortgage goes down I am probably still better off keeping the money in my offset account.

Have I got this correct?

If the Interest rate continues to fall can we expect the HMRC rate to fall as well?