Poll - could you afford to pay APNs?

[jbryce]

Is the only way I can possibly afford,

However a word of warning for those who do need to remortgage, lenders will not loan money if the reason is to pay a HMRC debt (or any debt for that matter). So if you wait until the actual APN comes in to get the mortgage and you give another reason (e.g. to buy a 2nd property, extension) you are technically committing mortgage fraud (e.g. giving a false reason for asking for the money).

If however you do so before hand (as technically there is no debt at this point) you could do so without technically committing mortgage fraud as once you have the money its up to you on how to use it.

Other option is to take a commercial loan, but thats way more expensive..

My point - be pro-active and start looking at mortgages now rather than waiting for a APN to roll in, having an offset mortgage can effectively stop you paying interest on the extra funds until you need it.

If you borrow the money and give a reason for that borrowing and then spend it on something else you are technically committing mortgage fraud. To avoid that you would need to use the money for the purposes for which you stated on your application and then realise it as an asset. For example you would need to purchase the Buy To Let and then subsequently sell it. In some ways this is a more efficient form of tax credit anyway.
This is the position of two mortgage lenders that I know of.

[happychap]

Third option for the poll

If you were issued APNs in 2015 could you afford to pay them.

Maybe we should have a third option, who has PAID!!

[DonkeyRhubarb]

Maybe we should have a third option, who has PAID!!

As far as I'm aware no contractors have received APNs yet.

The only people who have had APNs are wealthy individuals who used film schemes and the like. HMRC has gone for the easier, and more lucrative, targets to start with. People they know probably won't have any difficulty paying.

[flamel]

Not a chance

Given that only 0.00006 of the 65,000 have responded one can only assume that most can afford to pay - or is it the "I'll just pretend it's not happening and it'll all go away" routine?

I will never be able to pay not even with extended TTP.

Loans to pay this off are a bad idea unless the amount is small.

[DonkeyRhubarb]

Given that only 0.00006 of the 65,000 have responded one can only assume that most can afford to pay

Yep, that's how HMRC would spin it.

"We are only aware of 15 individuals who claim they would have any difficulty paying APNs"

[StrengthInNumbers]

Also majority of 65000 have still their heads under sand. Until the APNs start hitting they will ignore and then ..... Bang! It's going to be a very bad time for a lot of us especially
The unaware ones.

[regron]

I agree with the heads in sand comments. I work with a couple of contractors who are STILL on these schemes, despite receiving COP8's etc.... - Madness !!

[DonkeyRhubarb]

Apparently even wealthy footballers are struggling to pay APNs

Footballers who once earned millions face penury over tax demands | Football | The Guardian

[StrengthInNumbers]

With footballer facing this plight imagine what would happen to normal it contractors?

And if HMRC lose will they have to compensate for this mess? I hope justice prevails and HMRC will be stopped from being a dictator.

[DonkeyRhubarb]

With footballer facing this plight imagine what would happen to normal it contractors?

Footballers probably only put a portion of their net worth into these investment schemes.

Contractors put 100% of their annual income through the schemes, year after year. Some will have savings and assets to cover their liabilities. Many will not.

Forgive the pun, but going after contractors will be an entirely different ball game.