APN or CLSO - What to accept ?

[SomeDude]

Pay the APN. 4k is petty cash.

In that case why not go for the CLSO, and have this over with and out of your mind? In theory that should conclude hmrc interest in given year, sure - money is lost, but what are the chances to get the APN money back anyway, and the process can be dragged for years?

[Dylan]

Blimey, for 4k I would just pay CLSO!

[nabeelfarid]

Pay the APN. 4k is petty cash.

But why APN and not CLSO ?

[nabeelfarid]

In that case why not go for the CLSO, and have this over with and out of your mind? In theory that should conclude hmrc interest in given year, sure - money is lost, but what are the chances to get the APN money back anyway, and the process can be dragged for years?

Are you saying CLSO can't be dragged for years by HMRC ?

[Dylan]

Are you saying CLSO can't be dragged for years by HMRC ?

Well depending on the scheme you used there may be elements to be decided in the future (EG IHT) but the bulk of it will be done and dusted, CLSO means the main tax element is settled and done.

If it were a bigger amount then paying APN and seeing how it plays out would be more appealling but to be honest for 4k I would just settle and not have to deal with it anymore.

[webberg]

Well depending on the scheme you used there may be elements to be decided in the future (EG IHT) but the bulk of it will be done and dusted, CLSO means the main tax element is settled and done.

If it were a bigger amount then paying APN and seeing how it plays out would be more appealling but to be honest for 4k I would just settle and not have to deal with it anymore.

There are a number of views on the CLSO.

Mine is entirely negative. It does not deal with all current potential taxes that may have been incurred to date. It fails entirely to deal with possible future taxes. It gives no protection against change of law or penalty (I know people say it does but I can't see it in the words and if it's there, please point it out to me).

It is based on HMRC's unsubstantiated opinion and has no judicial backing.

All in all too uncertain and not nearly close enough to the Contractual Disclosure Facility terms to pray those in aid eventually.

There is the view that settling some of the issues is preferable to none. My view (others are available) is that if you settle some taxes and HMRC come along later and say - by the way you now owe IHT - what happens if you say "no" or "can't afford that"? Is the entire settlement undone? Who knows? You'd hope not but there's no certainty.

How long could HMRC wait before coming back for a second bite? Again, nobody knows.

My view is that settlement as presently offered is a poor deal. Better to pay the APN and try to settle another way which is litigation or negotiation.

[Dylan]

Completely with you on larger amounts and certainly I wouldn't settle for the amount they would no doubt deem I would owe, but honestly for 4k I would just pay it, not as if potential IHT on 4k is going to amount to much.

I guess each person has their own threshold but I would chalk 4k down to experience and just get on with my life. Even if they come back in the future it will be for utterly trivial amounts IMO.

[DotasScandal]

Completely with you on larger amounts and certainly I wouldn't settle for the amount they would no doubt deem I would owe, but honestly for 4k I would just pay it, not as if potential IHT on 4k is going to amount to much.
I guess each person has their own threshold but I would chalk 4k down to experience and just get on with my life. Even if they come back in the future it will be for utterly trivial amounts IMO.

I hold the diametrically opposed view.
Since the amount is relatively small (and therefore any penalties are going to be relatively small), why not resist it and make things difficult for HMRC, instead of rolling over?

Quite surprised how some people are happy to take the butthurt and "get on with their lives" as if nothing had happened. You guys never stand up for anything?

Then again, maybe I'm just too fond of principles.

[Dylan]

I'm quite happily fighting my corner for a significantly higher amount, and would wager I am further along the causing hassle to HMRC route than you are, but personally for the sake of such a small amount I'd just move on. Having principles is all well and good but why would you make your own life difficult or more stressful for such a tiny sum? If someone said to me they would give me 4k for what I perceive to be a fair amount of hassle I would decline, I value my own time far higher than that.

Your view is different and that is fine but me having a pragmatic view on my effort / stress v money is very different to "not standing up for anything". It is less than a decent pushbike ffs, hardly life changing sums of money, would you resist out of principle for £5 too? If so then good on you, but I'd just pay the fiver and not have to worry about it again.

[DotasScandal]

Yes, I would resist out of principle for £5 too. If some thug (I'm not talking someone who is genuinely in need) walks up to you and simply demands £5 "or else", are you cool with it? My view is that as far stress and damage are concerned, these have already been done by this whole bullying. "Paying up" will not give me any of that lost time and peace of mind back.
Then again, I appreciate everyone is different, and for some who are able to suppress feelings of having been wronged, it might be liberating. For me, only justice and reparation can.
I am not judging, just sharing my perspective.