Montpelier DTA scheme bulletin

[mossman]

came through the letterbox yesterday. Pages and pages of statement including interest charges. There was nothing showing the workings of how the interest calculations had been derived and whether they had taken account of my CTD.

I divorced my accountant husband some years ago, I should have known he would have eventually become of some use

I don't know whether to get some advice/action from an accountant (more money.....) or try a diy approach to verifying the statement and final interest amount.

Anyone got experience of trying to validate these kind of statements and can give me some hints and tips?

Did you find out if they'd taken your CTD into account? They just asked me for an amount which is much higher than I expected, so I'm wondering the same i.e. have they not taken account of the CTD that I bought 8 years ago, which was for the base amount + about 25%. I told them about the CTD. Do they not take account of it until you actually send it in, then re-calculate the interest? It seems dangerous to send the CTD in 'blind' i.e. not knowing exactly how much they're going to take out of it.

[BolshieBastard]

Did you find out if they'd taken your CTD into account? They just asked me for an amount which is much higher than I expected, so I'm wondering the same i.e. have they not taken account of the CTD that I bought 8 years ago, which was for the base amount + about 25%. I told them about the CTD. Do they not take account of it until you actually send it in, then re-calculate the interest? It seems dangerous to send the CTD in 'blind' i.e. not knowing exactly how much they're going to take out of it.

You have to tell the CTD Team the reference of each tax year 'debt' and how much of your CTD identified by its reference \ serial number, is to be applied.

You then have to contact the APN team and tell them the same info you gave the CTD Team else as you found out, the APN team will generally not take your CTD into consideration. HMRC do not bother talking to internal sections and teams.

And yes, you have to send the CTD back to the CTD team with your instructions else they wont action it. Keep a copy for your own records.

[Loobs40]

Did you find out if they'd taken your CTD into account? They just asked me for an amount which is much higher than I expected, so I'm wondering the same i.e. have they not taken account of the CTD that I bought 8 years ago, which was for the base amount + about 25%. I told them about the CTD. Do they not take account of it until you actually send it in, then re-calculate the interest? It seems dangerous to send the CTD in 'blind' i.e. not knowing exactly how much they're going to take out of it.

I had to send the CTD with covering letter for them to allocate it against the statement and recalculate the interest. I sent it Special Delivery. I have in the last few days been notified of a statement update via the govt gateway. The amount in interest I owe is less now, though as I only got the CTD a couple of years ago, only by a few hundred pounds. I still have a small balance to pay even with the CTD

[mossman]

CTD

I had to send the CTD with covering letter for them to allocate it against the statement and recalculate the interest. I sent it Special Delivery. I have in the last few days been notified of a statement update via the govt gateway. The amount in interest I owe is less now, though as I only got the CTD a couple of years ago, only by a few hundred pounds. I still have a small balance to pay even with the CTD

Thanks for the update. Even though I bought the CTD 8 years ago, it looks like I didn't put enough in to cover the exorbitant interest rate so I'm going to have to fork out some more money. And there's me thinking I was going to get a bit back

[BrilloPad]

Thanks for the update. Even though I bought the CTD 8 years ago, it looks like I didn't put enough in to cover the exorbitant interest rate so I'm going to have to fork out some more money. And there's me thinking I was going to get a bit back

And CTDs only cover the first 6 years worth of interest.

[centurian]

And CTDs only cover the first 6 years worth of interest.

You sure - I thought the cash-in value stopped accruing interest after 6 years.

But if you use them to pay a tax bill - it stops the interest accruing from the date of the CTD - however long ago that was.

[webberg]

You sure - I thought the cash-in value stopped accruing interest after 6 years.

But if you use them to pay a tax bill - it stops the interest accruing from the date of the CTD - however long ago that was.

Agreed

[BolshieBastard]

A single CTD has to be worth a minimum £100,000 before HMRC pay any interest on it. Interest is only paid for the first 6 years that the CTD is held ie from date of deposit to 6th anniversary. Beyond the 6th anniversary, no interest is paid.

If you have separate CTDs that total £100,000, there's no interest at all. HMRC pay a piss poor rate of interest so in reality, you will not usually get much interest on it.

The CTD will stop any penalty interest accruing on the tax debt while it is held. Once you cash it in and unless you let the money sit 'on account,' you will lose all the interest protection so it will be as if you never held the CTD.

In any dispute with HMRC, unless they have lost all their appeal avenues up to and including the Supreme Court, you should be very wary of cashing in your CTD or, any monies used by the CTD paid on account.

[helen7]

[BrilloPad]

Come to spread more bile and spite?

How is life in HMRC towers?