BN66 - Time to fight back (Chapter 3)

[BrilloPad]

I thought we had to file the returns online ourselves - a bit like we had to print it off previously, sign on page 10 then put it in the post.

If that's not the case and MontP will be doing it all for us then I stand corrected.

montp will be filing for us. but we should register to check what HMRC have on us. Mine was as expected : but I know a couple had a nice suprise!

[BrilloPad]

I received an acknowledgement of appeal and it contained some revised Amount payable figures that have confused me somewhat!

2003-4 55% postponed
2004-5 81% postponed
2005-6 58% postponed

whats left payable is whats already been paid on those years.

the postponement ack letter isn't very clear but there will be nothing to pay.

[MrRaincheck]

I Got my Final CN (now 4 in Total) for 2005-2006 on the 24th of Dec. Nice Christmas present. I have forwarded onto MP to appeal. Have also registered for the goverment gateway service today so I can see the status of the appeals etc. Now the sums involved are pretty much exceeded my offset mortgate so I am hoping this thing goes our way.

[nuffsaid]

I've not had any CN's yet, which is a complete suprise as the HMRC were chasing me relentlessly since 2006 claiming that my last 4 years of Travel & Subsistence were invalid.
Strangely they hadn't picked on the prior years...

... not yet anyway. I guess all this will kick off again when we win the JR.

[FloggingDolphin]

Hi,

Sorry if this has already been asked and answered but, just a quick one.

If I take a COTD and then use it to pay any tax liability, does it cover the interest on the liability (about 6% per year, right?) as well as the penalty charges (about 5% fixed of the total liability amount)?

Thanks,
FD

[NO TO RETRO]

montp will be filing for us. but we should register to check what HMRC have on us. Mine was as expected : but I know a couple had a nice suprise!

Got my tax return 07/08 from MP. We still have to sign (page 6) and send it back to them but they submit it online. Obviously, we are also responsible for making payment. Interestingly, HMRC have now added a specific 'Tax Avoidance Scheme' section to be filled in!

[TheBarCapBoyz]

I've not had any CN's yet, which is a complete suprise as the HMRC were chasing me relentlessly since 2006 claiming that my last 4 years of Travel & Subsistence were invalid.
Strangely they hadn't picked on the prior years...

... not yet anyway. I guess all this will kick off again when we win the JR.

I've got my 2005/06 under investigation from two separate HMRC offices: the Special Compliance Office under Mr B and my local HMRC tax office in Tunbridge Wells. That is because in that tax year, I was half Montp, half ltd company.

Like you, they have been going through my travel and expenses with a fine toothed comb, asking all sorts of dumb assed questions. "What do you use your dining room table for?", "What duties do you perform at home?" (phnarr phnarr)

At some point they will have to co-operate and issue one CN for that tax year... That level of joined up government might be just too much for the poor little lambs at the Revenue.

[johnnyguitar]

bankcruptcy an option

I was just wondering, if things turn out bad for us and we end up with a large 5-6 figure sum to be paid - how viable is it to declare bankcruptcy ?
What are the pros/cons ?
Should I shart shifting everything I own into my wife's name ?

great thread btw - still trying to catch up with all the posts - have been with MTM for a couple of years but not received a formal CN yet.

[DonkeyRhubarb]

Hi,

Sorry if this has already been asked and answered but, just a quick one.

If I take a COTD and then use it to pay any tax liability, does it cover the interest on the liability (about 6% per year, right?) as well as the penalty charges (about 5% fixed of the total liability amount)?

Thanks,
FD

FD,

There are no penalties. Some tax offices have issued surcharge notices by mistake but MP have put them straight. You would only have to pay a 5% surcharge if you didn't cough up within 28 days of being issued a final demand. Since we are appealing against CNs this won't apply until the appeals process has run its course. If we lose the appeal then you would have 28 days to pay up, after which they would surcharge you.

A CTD will cover any further interest from the day you take it out. HMRC have reduced the rate from 5.5% to 4.5% from 6th Jan. In fact, it is starting to look like quite a cheap loan especially since it's simple rather than compound interest.

I have added a link to the Interest Charges to the front page of the thread.

Cheers
DR

PS. if (as is expected) the base rate comes down again, and HMRC reduce their rate, it may get to a point where it's not worth taking out a CTD.

[DonkeyRhubarb]

Alternatives to CTD

Assuming you've got the cash of course.

As HMRC's late payment rate drops, a CTD is becoming less compelling.

1) Offset mortgage is probably the best option. 100% tax efficient, and it's unlikely mortgage rates will fall below what HMRC charge (currently 4.5%).

2) You could take a risk and invest in shares. Fairly conservative option would be a FTSE 100 tracker, which is currently yielding about 4.5%.

3) In terms of risk-free alternatives, my suggestion would be this savings account from Investec Private Bank, which guarantees to pay a consistently competitive rate. The only catches are that it has a minimum deposit of £25k and 3 months notice. It is currently paying 4.6%.

http://www.investec.com/UnitedKingdo...ices/High5.htm

I opened an Investec High5 account a few months ago and have been well impressed. I have found the level of service far superior to bog standard high street banks and building societies.

Anyone else have any suggestions to throw into the pot?