BN66 - CTD buying advice needed

[helen7]

Hi,

I about going to get my CTD this week. However I have a few questions.

1. If I submit via CHAPS, how do they know the money is from me? Looking at the instructions all it asks is for me to send a letter with my name and the date. Don't they need my tax ref number??

2. Do I need to tell HMRC special investigations unit? If not, won't they keep charging interest on the money owed.

Thanks!

[poppy01]

Hi,

I about going to get my CTD this week. However I have a few questions.

1. If I submit via CHAPS, how do they know the money is from me? Looking at the instructions all it asks is for me to send a letter with my name and the date. Don't they need my tax ref number??

2. Do I need to tell HMRC special investigations unit? If not, won't they keep charging interest on the money owed.

Thanks!

I dont know about the chaps bit, but I'm pretty certain you dont need to tell the SCO, its a nice surprise you can spring on them when the time comes, they will just have to recalculate the interest....

[DonkeyRhubarb]

According to this, you just send a covering letter. I presume they must be able to cross-reference the transaction from the date of payment. In any case your bank records would show transfer of funds into their account if there was any dispute. (I paid by cheque and it worked fine.)

http://www.hmrc.gov.uk/howtopay/cert_tax_deposit.htm

You certainly don't need (or want) to tell SCO or CSI (or whatever the jumped up bureautwats call themselves these days). Supposedly they don't have any access to CTD records, so in theory getting a CTD does not reveal your hand.

[Ken123]

Hi,

I've not had a demand for payment yet from HMRC so the exact amount potentially owed is unknown.

For this reason, I guess I have to come up with an estimate and take out a CTD based on the calculated sum.

Supposing I owe £100K from the last 3 years worked - would getting a CTD for £35K be sufficient to stop arising interests?

Thanks in advanced.

[DonkeyRhubarb]

Hi,

I've not had a demand for payment yet from HMRC so the exact amount potentially owed is unknown.

For this reason, I guess I have to come up with an estimate and take out a CTD based on the calculated sum.

Supposing I owe £100K from the last 3 years worked - would getting a CTD for £35K be sufficient to stop arising interests?

Thanks in advanced.

If your additional tax liability for the past 3 years was £100k, then you need to take out a CTD for £100k to prevent any further interest.

[BrilloPad]

Hi,

I've not had a demand for payment yet from HMRC so the exact amount potentially owed is unknown.

For this reason, I guess I have to come up with an estimate and take out a CTD based on the calculated sum.

Supposing I owe £100K from the last 3 years worked - would getting a CTD for £35K be sufficient to stop arising interests?

Thanks in advanced.

You could ask montp to calculate an estimate.

[Ken123]

Thanks. If I can only afford to put in 70K, does that mean that interests will only arise for the remaining balance of £30K?

[BrilloPad]

Thanks. If I can only afford to put in 70K, does that mean that interests will only arise for the remaining balance of £30K?

Yes - that is correct.

[Ken123]

Thanks for the clarification.

Looks like it's going to be a miserable Christmas for the family, but at least there's still a roof over their heads - just!

[mossman]

CTD Estimate

Sorry if this has been asked before elsewhere, but I need to estimate how much to whack into a CTD. The way the banking system is going, a CTD is probably the safest place for the dosh. I don't want the double whammy of Hector asks for the money, and I haven't got it because the bank has gone ti**-up.

I was thinking of one third of the income received from the Offshore Trust. Woulkd that be about right to cover the tax + NI liability?