BN66 - Round 2 (Court of Appeal)

[swede]

About two years ago, just after I'd received a closure notice relating to my short membership of the MTM scheme, I overpaid a tax bill by £3k. When some months later I asked for this back, HMRC told me that I could go swing as I was under investigation related to the MTM scheme (or words to that effect).

It's only just occurred to me that I might have been talking to an idiot on the other end of the line (yes, I am naive and over trusting). Can HMRC hold on to money like this?

I've always been returned any money that I have overpaid, but I think it largely depends on who you get to speak to, and what sort of day they are having! I have heard of people on this forum coming up against the same issue as you describe.

As always, there seems to be no consistency (and hence fairness) when it comes to this bunch.

[helen7]

About two years ago, just after I'd received a closure notice relating to my short membership of the MTM scheme, I overpaid a tax bill by £3k. When some months later I asked for this back, HMRC told me that I could go swing as I was under investigation related to the MTM scheme (or words to that effect).

It's only just occurred to me that I might have been talking to an idiot on the other end of the line (yes, I am naive and over trusting). Can HMRC hold on to money like this?

I just underpaid my following years tax bill by that amount; brining my account to 0.

[OnYourBikeGB]

I will see what the PwC side make of it and report back.

Any word back on this DR? The more I thought about this at the weekend the more positive I thought it was.

[DonkeyRhubarb]

Any word back on this DR? The more I thought about this at the weekend the more positive I thought it was.

The guy managing the case at PwC is away for half-term, so I probably won't find anything out until next week.

[OnYourBikeGB]

The guy managing the case at PwC is away for half-term, so I probably won't find anything out until next week.

Lol, thanks DR. Hopefully that means he has kids and PwC aren't using someone who is working there on job experience.

[DonkeyRhubarb]

Lol, thanks DR. Hopefully that means he has kids and PwC aren't using someone who is working there on job experience.

For obvious reasons, I don't want to reveal his name but he's definitely no rookie. By the way, the Barrister who is representing them in court doesn't work for PwC - he's from a leading Chambers.

Also, although I keep referring to it as PwC, it is actually PwC Legal which I think is a separate entity from the accountancy practice. They are essentially a law firm specialising in commercial litigation.

PwC Legal Home - PwC UK

One other thing to bear in mind is that PwC did not sell the scheme to anyone. They just coordinated the class action to represent scheme users (the "consortium") and, unlike us, the users are having to fund everything out of their own pockets.

I'm not sure exactly how many are in the consortium but I'd be surprised if it's more than a couple of dozen or so. Obviously they're in a bit of a different league to us though.

For example, I understand one of the members of the consortium put £60M gross through the scheme.

[BolshieBastard]

About two years ago, just after I'd received a closure notice relating to my short membership of the MTM scheme, I overpaid a tax bill by £3k. When some months later I asked for this back, HMRC told me that I could go swing as I was under investigation related to the MTM scheme (or words to that effect).

It's only just occurred to me that I might have been talking to an idiot on the other end of the line (yes, I am naive and over trusting). Can HMRC hold on to money like this?

Part of the MTM scheme was to set up a DD to pay SE NI Conts. I never cancelled this and always got the money back so didnt bother.

But since they started all this BN66 tulip, they havent been returning the surplus I've been paying. Part of me says I should cancel the DD and **** HMRC off but, even though its only a 100 quid a year, its probably cut the interest I owe by getting on for a grand. And as tesco say every little help.

[Morlock]

Part of the MTM scheme was to set up a DD to pay SE NI Conts. I never cancelled this and always got the money back so didnt bother.

But since they started all this BN66 tulip, they havent been returning the surplus I've been paying. Part of me says I should cancel the DD and **** HMRC off but, even though its only a 100 quid a year, its probably cut the interest I owe by getting on for a grand. And as tesco say every little help.

If you're still self-employed then you should continue to pay the contributions (by law), but if you're not self-employed you ought to cancel the direct debit because it's money down the drain. Surplus NI Contributions will not offset against any income tax owed.

[WhatEver]

NI refund

Surplus NI Contributions will not offset against any income tax owed.

..but you can reclaim it. I carried on paying this for a year or so back in 2005 (all those years ago). I eventually called HMRC who sent a form for me to sign and a refund cheque came through a few weeks later. Almost too easy.

HM Revenue & Customs: Claiming back overpaid National Insurance contributions

[BolshieBastard]

If you're still self-employed then you should continue to pay the contributions (by law), but if you're not self-employed you ought to cancel the direct debit because it's money down the drain. Surplus NI Contributions will not offset against any income tax owed.

Are you certain? HMRC will charge for extra NI conts if they are successful in their quest. So, although the extra contributions paid wont lessen the tax liable, it will offset to some degree the increased NI bill.

Im no longer SE.