BN66 - JR Judgement Day

[Solo]

Late Payment Penalties

It works exactly like a Savings Account. You can write to them at any time requesting a full or partial withdrawal, and they send you a cheque.

I know someone who took out a CTD and then, due to personal circumstances, had to withdraw the money. It was very straightforward.

Don't rush into anything with CTD's be aware that the CURRENT interest rate on late payments is ONLY 2% p.a (and we know that any debt is NOT compound interest) so even if you owe £100,000 original tax from your CN adjustments, that only works out at £2000 per year or £166 per month. DONT go liquidating assets that may still have 12 months to mature and may have a better return than 2%

[Doug1965]

It was very straightforward.

I didn't think straight forward and tax went together

[travellingknob]

It works exactly like a Savings Account. You can write to them at any time requesting a full or partial withdrawal, and they send you a cheque.

I know someone who took out a CTD and then, due to personal circumstances, had to withdraw the money. It was very straightforward.

I find it amazing theres so much talk of people taking out CTD's and yet there's so much talk of bankrupcy, in some cases i've noticed by the same people ! So the question is, which position are you in ?

Personally, I have many debts and this tax 'bill' is just one of them. I currently pay highest interest rates to credit card companies, then to my mortgage provider and lastly to this tax 'bill' should it 'actually become payable'. Surely, for someone who doesn't have savings their best course of action is to attend to their highest interest bearing debts first. Currently the HMRC interest rate comes in well below most mortgage rates. Future interests rates may change the future focus but for now it most certainly isn't in raising funds towards a CTD.

Those people of course who are in the luxurious position of having 'real savings' not just savings offsetting other debts might be well advised to consider CTD but only if they cannot match the HMRC interest rate - it seems for the moment, it is just about realistic to beat it so why go into a CTD right now ? Higher base rates in future will likely reduce your ability to beat the HMRC rates which would mean that in future the logic of taking out a CTD increases. However, that is a complete unknown at this point so why is everyone panicking about CTD's right now ?

Surely the best advise if you aren't capable enough to work it out yourself, go see your IFA !

[NO TO RETRO]

Toocan: An informative post.
However, isn't the attraction of a CTD the fact that you can stop interest accruing on the WHOLE amount you owe immediately (providing you have the funds of course)?
Whereas, there is a limit to how much you can place in a cash ISA immediately and thereafter, each year. In fact, supposing you owe £100k, it would take about 30 years (at the current allowable annual deposit rate) to securely deposit the lot!

[Morlock]

Quote from David Cameron:

"These unfair, retrospective taxes from the Government’s tax inspectors will push firms across the country into insolvency. This is the worst possible tax change to introduce in the middle of a recession."
(http://www.conservatives.com/News/Ne...ndustries.aspx.)

Has anyone on this forum sought his view on our own case?

[DonkeyRhubarb]

Don't rush into anything with CTD's be aware that the CURRENT interest rate on late payments is ONLY 2% p.a (and we know that any debt is NOT compound interest) so even if you owe £100,000 original tax from your CN adjustments, that only works out at £2000 per year or £166 per month. DONT go liquidating assets that may still have 12 months to mature and may have a better return than 2%

Correction - 3% p.a. (They charge bank base rate + 2.5%)

However, I agree 100% with what you are saying. There is no "one size fits all" solution.

[Cantthinkof1]

Looking at the latest interest rates from HMRC, you get nothing in interest for anything less than £100K - correct me if I am wrong in saying this.

[BolshieBastard]

an anyone tell me where on the gov gateway I can find out how much my exposure is? I've activated my account but cannot see anything under self assessment or anywhere else!

[DonkeyRhubarb]

Looking at the latest interest rates from HMRC, you get nothing in interest for anything less than £100K - correct me if I am wrong in saying this.

The interest rate payable on a CTD will move with the bank base rate but it will always be crap compared to what you can get in a leading savings account.

A CTD has one and only purpose - to stop interest accruing on your tax liability.

[Emigre]

What will the Tories Do?

Quote from David Cameron:

"These unfair, retrospective taxes from the Government’s tax inspectors will push firms across the country into insolvency. This is the worst possible tax change to introduce in the middle of a recession."
(http://www.conservatives.com/News/Ne...ndustries.aspx.)

Has anyone on this forum sought his view on our own case?

I remember this coming round last year. From memory Caroline Spelman made similar noises at the time. Saying one thing to from the position of Shadow Govt. and doing it once in power don't necessarily sit comfortably together although I attach a link to George Osborne's vision for the economy. I joined the Party so that I could ask Cameron the question. It got passed to George Osborne who told me he could make no commitment until he could see what he might inherit if they get there.

I draw your attention to pages 13 and 14 in particular where there does seem to be some commitment to restore confidence in the tax system:

http://issuu.com/conservatives/docs/neweconomicmodel

It doesn't quite suggest retrospective unemploying Dave "Henchman" Hartnett but we can hope. Mistakes are one thing, lies are bad, covering them up is bottom of the barrel, being aggressive with it belongs in Zimbabwe.