Finance for Settlement with HMRC

[settledwithhrmc]

I have recently settled with HMRC and the final figure was much larger than i could have expected. This was due in part to the prolonged time HMRC came to finalize the figures and then applying late payment interest. we are talking years of delays. I bit the bullet and settled, doing so by selling my last remaining asset ( except the house ). It is clear and i feel better, but i know how troubling it is. If anyone is really struggling and the debt is larger than £100,000 and you only have your house left and you don't want to sell, i can refer you to someone who might be able to assist. The terms aren't great - circa 9% - secured against assets - but in the event of not being able to remortgage as many of us found hard to do, not wanting to lose house, or being made bankrupt and killing the right to work in the city, then as a last port of call this provides possibly of an escape, albeit pushing the can down the road. But it might be better to have this group as your creditor than HMRC. <mod snip>

I had an EBT ( not an IT contractor ) but over the years have been following this forum hoping for a chink of light in the fight against HMRC. So thought the least i could do, knowing there is a possible route to finance and having been through hell and back, is to let you all know. Good luck all.

[cojak]

I have recently settled with HMRC and the final figure was much larger than i could have expected. This was due in part to the prolonged time HMRC came to finalize the figures and then applying late payment interest. we are talking years of delays. I bit the bullet and settled, doing so by selling my last remaining asset ( except the house ). It is clear and i feel better, but i know how troubling it is. If anyone is really struggling and the debt is larger than £100,000 and you only have your house left and you don't want to sell, i can refer you to someone who might be able to assist. The terms aren't great - circa 9% - secured against assets - but in the event of not being able to remortgage as many of us found hard to do, not wanting to lose house, or being made bankrupt and killing the right to work in the city, then as a last port of call this provides possibly of an escape, albeit pushing the can down the road. But it might be better to have this group as your creditor than HMRC. <mod snip>

I had an EBT ( not an IT contractor ) but over the years have been following this forum hoping for a chink of light in the fight against HMRC. So thought the least i could do, knowing there is a possible route to finance and having been through hell and back, is to let you all know. Good luck all.

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[simran]

Hello

Hi could you pls advise how you settled with HMRC. Did you go through a tax adviser or you dealt it yourself.

[BrilloPad]

So you have not actually used this company? How can you suggest referring people to them?

Do you read the CUK forum? Did you see https://forums.contractoruk.com/hmrc...timetopay.html ?

I can see several pitfalls in what you suggest.

I hope anyone who wants to settle will get professional advice first.

[settledwithhrmc]

my advice

Hi could you pls advise how you settled with HMRC. Did you go through a tax adviser or you dealt it yourself.

You must seek professional help. My personal case dragged on for 4 years plus. The revenue dragged their feet time and time again, and during the course of the negotiation, i think we had to deal with at least three different people / teams over the course of the settlement due to staff turnover. Each one starting the process again. At the end of the process, they had the temerity to add interest penalties to the settlement figure. We tried to argue these were unjust as it was them who had taken so long to conclude not us. Their counter argument is they provided ( an inflated ) settlement figure at the start and we could have paid it down on account to prevent the interest accumulation. This despite the first inspector stating that we shouldn't do this, The original figure they calculated was in excess of seven figures which they told me was just a stab in the dark in order to open the investigations. This would have equated to a tax rate of close to 98% - so of course, i disputed it. We ended up spending close to £140000 on accountancy fees for the firm as a whole to manage the whole process - but this did achieve a final settlement figure well below the stab in dark they had come up with. Based on facts rather than fingers in the air. Our ebt was complicated as it was set up offshore to manage our HR function and payroll for the firm as we genuinely expanded internationally and we didn't want to have these functions in-house. We still paid basic salaries on shore. the structure was set up in lieu of pensions. But in the eyes of the tax collectors, all such schemes are artificial. There is no way of winning - so after rangers, we bit the bullet. The stress it was causing, the mounting costs and guilty till proven innocent approach taken by hmrc to entrepreneurs and contractors alike left us little choice tbh. So get advice, get it over with and get on with your life. these are my personal opinions only and do take advice before making any decisions. good luck. Do I feel better, yes and no. They can take your money but they cant take your soul.

[settledwithhrmc]

I agree

So you have not actually used this company? How can you suggest referring people to them?

Do you read the CUK forum? Did you see https://forums.contractoruk.com/hmrc...timetopay.html ?

I can see several pitfalls in what you suggest.

I hope anyone who wants to settle will get professional advice first.

Do def take advice first - the rate is higher than time to pay from HMRC. this is only in the event you need funds for a lump sum as is often the case with HMRC. Also, as I stated, a facility like this is to be used only in the event you don't have another disposable asset to raise the cash. As for the firm, I have known one of the principles for a long time - but this was only offered as a last resort, and again, anyone who required this service should take their own references etc Just trying to offer hope for those at the end of the journey who hay have no other recourse as I know how bleak things can look at certain times. best of luck and thank you for highlighting the time to pay angle..