BN66 - Time to fight back (Chapter 3)

[TheBarCapBoyz]

HMRC Interest Rate

With the base rate now at 3% and likely to go down to 1% or even 0%, does that mean HMRC will lower their 7.5% interest?


anyone know how they decide what figure to use?

[Fog]

Interest

If you get a CTD does that mean that they won't charge interest on interest?

[Ratican]

Forex

I think a more interesting Poll would be out of everyone who could afford to pay the IR, i got my CN on friday, if i include 07/08 then im looking at 100K... sadly unless i sell my children to Madonna they arent getting anything from me..

I think there is also an difference in being financially able to pay or willing to pay.
I have been battling with this. I am able to pay some of my total liability - but unwilling to.
Let's say I owe £150k and I have £65k that I am able to pay.
Is there any sense or point in paying it? Will Hector not sell my house and belongings anyway to scrape together some cash for the balance? They won't manage and I'll be declared bankrupt. Whopty sh*t!
So. Why not take that £65k out of the bank and squander it travelling round the world for a couple of years or stick it on roulette red? Or maybe do some risky forex trading (tax free) to try to turn it into £150k. Spend it - risk it - probably lose it. I'll still be bankrupt at the end of the day anyway - but I'll have had a good time. Maybe.
Maybe I should sell the house and belongings now and have a bit more to spend.

Is this nonsense? I'm not sure...
Maybe instead of "investing" in a CTD - those of us with less responsibility and willing to try something more risky could pool our cash and do something with it. Stick a few million in a hedge fund? Surely that should be a good bet given the state of the markets...

Blah... blah... mindless ramblings...

[DonkeyRhubarb]

With the base rate now at 3% and likely to go down to 1% or even 0%, does that mean HMRC will lower their 7.5% interest?


anyone know how they decide what figure to use?

HMRC reduced it from 7.5% to 6.5% last month.

Even if the base rate falls to zero, I would be surprised if HMRC's rate comes much below 4%. After all, it is meant to be a disincentive for late payment.

However, 4% would make it quite a cheap loan.

[DonkeyRhubarb]

I think there is also an difference in being financially able to pay or willing to pay.
I have been battling with this. I am able to pay some of my total liability - but unwilling to.
Let's say I owe £150k and I have £65k that I am able to pay.
Is there any sense or point in paying it? Will Hector not sell my house and belongings anyway to scrape together some cash for the balance? They won't manage and I'll be declared bankrupt. Whopty sh*t!
So. Why not take that £65k out of the bank and squander it travelling round the world for a couple of years or stick it on roulette red? Or maybe do some risky forex trading (tax free) to try to turn it into £150k. Spend it - risk it - probably lose it. I'll still be bankrupt at the end of the day anyway - but I'll have had a good time. Maybe.
Maybe I should sell the house and belongings now and have a bit more to spend.

Is this nonsense? I'm not sure...
Maybe instead of "investing" in a CTD - those of us with less responsibility and willing to try something more risky could pool our cash and do something with it. Stick a few million in a hedge fund? Surely that should be a good bet given the state of the markets...

Blah... blah... mindless ramblings...

I think the problem is you wouldn't want to gamble that £65k unless the case was lost, and then it would be held against you in any bankruptcy proceeding.

A similar argument applies to spending it. I'm sure the courts would examine your bank records for any attempt to dispose of assets.

As for hedge funds, I can't help feeling many will be next in line to fold with all the de-leveraging that's going on.

On the other hand, there is nothing to stop you investing the money in a high risk venture. You could argue, particularly with interest rates plunging, that you needed to invest the money to stand any chance of paying off the debt.

If you went down this route, then you need an investment that has an outside chance of at least doubling your money. Preferably, you would also want something which is tax free. ISA's are no good because you can only invest £7,200 per year. Spread betting is a possibility but 90% of people lose money doing this.

Setting aside the tax-free angle, you might be better off taking a huge punt on a handful of individual shares, a high-risk emerging market or something like precious metals eg. Silver.

If you are likely to be bankrupted if the case goes against us, then there is an argument for taking drastic measures. Unfortunately, I think you would need to do something now, and not leave it until the 11th hour.

PS. with rising unemployment and the risk of not being able to get future contract work, you might need some of this money to live off.

[BrilloPad]

If you get a CTD does that mean that they won't charge interest on interest?

They wont charge interest on interest or penalties. But it will stop the interest bill ticking up. At the moment its 6.5%.

BP

[DonkeyRhubarb]

De Graaf numbers

http://forums.contractoruk.com/685621-post15.html

Personally, I haven't come across any other schemes but it does make you wonder how many people are affected by this. Perhaps it runs into many thousands.

[max]

I think a more interesting Poll would be out of everyone who could afford to pay the IR, i got my CN on friday, if i include 07/08 then im looking at 100K... sadly unless i sell my children to Madonna they arent getting anything from me..

have you considered going back to NZ(assuming that's where you are from)?

would they chase you?

[BrilloPad]

have you considered going back to NZ(assuming that's where you are from)?

would they chase you?

I have heard HMRC have a Sydney office.......

[poppy01]

I would urge caution over some of the recent posts, ie fleeing to NZ, disposing of assets etc...