BN66 - Time to fight back: Continued

[JMK]

Nothing I can put my finger on but something about making a payment on account makes me feel very uneasy.

My biggest concern would be that you've stuck your head up, and given them your money explicitly, you're standing out from everyone else following MPs advice. They may therefore be encouraged to pursue you more aggressively. But if MP win there's not really a lot they can do. I think...

MP didn't say it was a bad idea, they just said I wouldn't be able to get the money back like I could with a CTD, it'd be tied up until the bitter end.

[smalldog]

Nothing I can put my finger on but something about making a payment on account makes me feel very uneasy. Perhaps I'm being paranoid but I just don't trust HMRC, and probably with good reason!

Can anyone think of any scenarios where paying on account could backfire?

Montp win but HMRC just take a lonnnnggggg time sending you back your cash, earning all that lovely interest...they arent the most efficient bunch now are they. I reckon trying to get back a five or six figure sum will require them to go through a whole loads of authorisations. Not the same as a few hundred quid on an SA is it!

[Hawkwind]

I think that payment on account and settle are 2 different things. There's more information on the "old" thread.

I know that they are different but I would suspect that HMRC would regard a Payment on Account as an admission of liabililty and tend to treat them as the same.

[TheGadgetMan]

Nothing I can put my finger on but something about making a payment on account makes me feel very uneasy. Perhaps I'm being paranoid but I just don't trust HMRC, and probably with good reason!

Can anyone think of any scenarios where paying on account could backfire?

take a look at this recent case.....

http://www.thisismoney.co.uk/tax-adv...&in_page_id=77

I know the fine detail is slightly different...but in this case, HMRC agreed that the guy had paid too much tax but still refused to pay it back...and when they went to court, the judge agreed...

so even when HMRC admit they are in the wrong, there's still no guarantee of getting your money back...its a CTD for me...

[DonkeyRhubarb]

Payment on Account (interest)

Would this apply if we won? In other words, could HMRC wriggle out of refunding interest on the POA because it was in excess of what was declared on our SA returns?

http://216.239.59.104/search?q=cache...lnk&cd=2&gl=uk

A CTD does have one big advantage. Repayment supplement isn't due if you make a payment of tax which isn't consistent with your tax return. In other words, if you file a return showing tax due of £1,000 but you pay over tax of £100,000 the £99,000 doesn't get you repayment interest. This is not just theoretical - the Revenue systems are set up to identify and deal with this. A CTD does of course have interest on encashment (albeit at a derisory rate) if not used to pay tax. So if you're depositing an amount which you think may be repaid at a later date a CTD goes some way towards protecting your interest position.

[smalldog]

bloody hell they are snakes arent they...whichever way you turn it only works to their advantage not the tax payer!!!!

[BrilloPad]

My understanding is that the JR will not take long to complete (maybe in the 1st quarter 2009) and if MP lose - that will be the end of it - no more options. (??)

If MP win that is when the process could start taking some time. (??)

It will take some time.

There is a second option in fact - not that I will say on open forum.

[SantaClaus]

I've noticed that people are beginning to feel stronger and more empowered on this forum.

Keep it up! The Revenue have such a flimsy case, they will lose.

[malvolio]

No, they won't. Grow up.

[BrilloPad]

No, they won't. Grow up.

Closed forum anyone?