BN66 - JR Judgement Day

[KackAttack]

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

http://www.hmrc.gov.uk/payinghmrc/cert-tax-deposit.htm

But if the CTD (for under 100K) pays 0% - does that mean that the interest being charged on the tax liability is 0%.

[Emigre]

http://www.hmrc.gov.uk/payinghmrc/cert-tax-deposit.htm

But if the CTD (for under 100K) pays 0% - does that mean that the interest being charged on the tax liability is 0%.

To "clarify", having the CTD does still cancel the tax that otherwise have been due on the liability, but it certainly does not mean that any tax below £100k does not attract interest!

[elpinar]

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.

and you only get that if it is a single CTD of that amt - so if you take out 2 of 50k at different times (due to cash flow) they dont give you the 100k interest which is a bit of a cheek

ALSO a little word of warning , if you get a CTD you WILL get a nasty brown official envelope drop through your door about 10 days later that sets your mind racing as to what they want now....... then you open it up and its just your ctd certificate ..... so dont panic when the brown envelope turns up !"!

[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!

Pah! Think I found it but it doesnt seem to give any info on the total exposure.

[StellaFan]

Can anyone confirm whether the letter from Montpelier \ MTM was issued yesterday \ today?

Thanks.

You should get it today

[johnnyguitar]

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!

It's with noting that if your wife/husband doesn't work (i.e. doeasnt earn anything), you can make the most of their personal tax allowance band on any non-ISA type savings.
So, roughly, you can earn 5-6k per year before paying tax on it. Remember that your earnings from a savings account is just the interest. So even 100k invested for a year would be unlikely to earn this much. So she won't pay tax on the interest - same as a cash ISA.

[DonkeyRhubarb]

http://www.hmrc.gov.uk/payinghmrc/cert-tax-deposit.htm

But if the CTD (for under 100K) pays 0% - does that mean that the interest being charged on the tax liability is 0%.

Dream on.

It's bank base + 2.5% (3%) on everything.

[Morlock]

Tory Plans

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.

Cheers, Emigre.
I might have guessed that you guys would have already covered the bases on this one. Keep up the good work!
That's a promising link from the Tories, by the way - and I note that they have already committed to an emergency budget within 50 days of taking office.

[rosbiff]

Dream on.

It's bank base + 2.5% (3%) on everything.

Surely the interest stops accruing on the amount you have a CTD for, from the date of the CTD, otherwise what's the point ?

[DonkeyRhubarb]

On-line Statement

Log into Govt Gateway.

https://online.hmrc.gov.uk/home

Select Self Assessment
then View Statement
then Statement History

The total tax/nic due is calculated by adding up all the amounts shown as Collection Suspended

This is the amount you would need to deposit in a CTD.

Note: the statement does not include any interest