BN66 - Round 2 (Court of Appeal)

[SantaClaus]

I'd just like to wish everyone a Merry Christmas too!

Put Hector to the back of your mind, get some logs on the fire and settle down in your favourite chair with a nice whiskey.

And please keep your chimneys clear for me on Christmas Eve

[SilkBricks]

Enjoy the festive period!

I'd just like to wish everyone a Merry Christmas too!

Put Hector to the back of your mind, get some logs on the fire and settle down in your favourite chair with a nice whiskey.

And please keep your chimneys clear for me on Christmas Eve

I'd also like to say a big thanks to all of you guys that have provided such valuable updates and kept us up to speed with how things have been progressing - It's much appreciated

[bombaycat]

Does HMRC net?

Hi Guys,
Hope all had a lovely Christmas - just wondered what people's experience was with HMRC and them netting out payments. I am owed around 1500 by hector but due to the investigation obviously they won't repay it - this has been the case for quite some time now. I happen to owe about £170 for this year but wondered whether I actually need to pay it or whether they will net it out against the money that they owe me? Note: This is all separate to the amounts put into limbo while this joyous case is ongoing....

Any experience of this?

I was going to pay it to avoid them doing some ridiculous interest charges due to them being different buckets somehow but I can't really see why the money isn't fungible.

All suggestions welcome.

[DonkeyRhubarb]

Hi Guys,
Hope all had a lovely Christmas - just wondered what people's experience was with HMRC and them netting out payments. I am owed around 1500 by hector but due to the investigation obviously they won't repay it - this has been the case for quite some time now. I happen to owe about £170 for this year but wondered whether I actually need to pay it or whether they will net it out against the money that they owe me? Note: This is all separate to the amounts put into limbo while this joyous case is ongoing....

Any experience of this?

I was going to pay it to avoid them doing some ridiculous interest charges due to them being different buckets somehow but I can't really see why the money isn't fungible.

All suggestions welcome.

It might be worth checking online to see what's showing in your account and whether the £170 has been taken off the £1500 credit.

You can register below, although it does take a few days to receive a Login through the post.

https://online.hmrc.gov.uk/registration/individual

By the way, some people have found that if you badger them it is possible to obtain a repayment.

[Morlock]

I am owed around 1500 by hector but due to the investigation obviously they won't repay it.

This doesn't sound right. If they've suspended certain amounts from previous tax years pending investigation, then the numbers should show as equal and opposite credits and debits on your statement; the rest of your account should be subject to the normal rules of over- and under-payment.

I happen to owe about £170 for this year but wondered whether I actually need to pay it or whether they will net it out against the money that they owe me?

Your statement should show a balance which takes into account all credits and debits, with a net figure of over- or under-payment. If you're paying on account the payment will show as a credit on your next statement and will reduce your overall liability. You can apply to reduce the amount of payment on account if you wish, but you'll need to justify it.

Bottom line: if the total balance on your tax statement shows an under-payment, you should stump up otherwise you'll be subject to interest and possible penalties. If you disagree with any line items in the statement, you'll need to appeal them.

Hope this helps.

[bombaycat]

It might be worth checking online to see what's showing in your account and whether the £170 has been taken off the £1500 credit.

Yes, I am looking online have been registered for a while. It shows that currently I am owed money, when I say they won't repay it I have found the request repayment online is ignored and I thought someone had found that it was somehow connected to the investigation even though those amounts are separately offset. I haven't chased it really.

OK, checked again and they have done that weird thing where they have said I paid what is due for this year on Jan 18 2008 - fabulous - i.e. they've netted it off against a random old payment. So looks ok. The odd thing I've found is that sometimes they say you have paid something before it is due which is ok, but I've also found that they use payments in random orders and sometimes they deduce that you paid really late and try to add on interest simply because they didn't use the payment you made at the time that amount was due - I complained about this before as it is almost impossible to unpick their peculiar accounting methods. Monty sorted it out for me though - but beware fellow peeps in case they try it on you can make a couple thousand difference.

[prozak]

Sell your houses...

Hi All,

watching this with interest though unaffected by it.

Interested because I was using an EBT for a bit and noted the HMRC closed that loophole for next year - with immediate measures from 9th Dec and straight away wondered about retrospective legislation.


Has anyone thought about selling their house or mortgaging to the hilt and then taking a trip to switzerland?

Your money cannot be touched. WRT tax issues the Swiss would only be obliged to open up your account for illegal activities. Only Tax Fraud is illegal in switzerland.

There would be other options available as well.... offshore companies buying property overseas....

Sure HMRC might be able to trace the flow of money to a point.... but will they be able to force things to happen and impinge on your rights protected by another soveriegn nation? NO WAY.

[Morlock]

Hi All,

watching this with interest though unaffected by it.

Interested because I was using an EBT for a bit and noted the HMRC closed that loophole for next year - with immediate measures from 9th Dec and straight away wondered about retrospective legislation.


Has anyone thought about selling their house or mortgaging to the hilt and then taking a trip to switzerland?

Your money cannot be touched. WRT tax issues the Swiss would only be obliged to open up your account for illegal activities. Only Tax Fraud is illegal in switzerland.

There would be other options available as well.... offshore companies buying property overseas....

Sure HMRC might be able to trace the flow of money to a point.... but will they be able to force things to happen and impinge on your rights protected by another soveriegn nation? NO WAY.

It sounds like you are suggesting the evasion of tax by absconding abroad.
Good luck with that.

[prozak]

Not sure it would be evasion.....

Be just like if you had no cash and were bankrupt.....

[bombaycat]

Hi All,

watching this with interest though unaffected by it.

Interested because I was using an EBT for a bit and noted the HMRC closed that loophole for next year - with immediate measures from 9th Dec and straight away wondered about retrospective legislation.


Has anyone thought about selling their house or mortgaging to the hilt and then taking a trip to switzerland?

Your money cannot be touched. WRT tax issues the Swiss would only be obliged to open up your account for illegal activities. Only Tax Fraud is illegal in switzerland.

There would be other options available as well.... offshore companies buying property overseas....

Sure HMRC might be able to trace the flow of money to a point.... but will they be able to force things to happen and impinge on your rights protected by another soveriegn nation? NO WAY.

I could be wrong but I thought that it had been said that the EBT loophole closure was not going to be retrospective so such extreme measures should not be necessary. But having said that how much can anyone trust HMRC after their recent activities...