Any settlement figures yet?

[piebaps]

Ok so they made a commitment to the TSC about not forcing house sales (although they'll claim the equity anyway), but as I think WTT commented elsewhere, that promise can be by-passed if they push for insolvency.

Mary Aiston seemed to say that insolvency would only be sought if a) there was an existing tax debt (presumably she meant non-LC related) or b) there was no willingness shown to settle.....so basically, if you can't / won't settle, then they reserve the right to bankrupt you & take your house. Presumably that's why they brought back preferential creditor status.

A fair reading of the situation?

No - I disagree. You said "no willingness to settle" then translated that to "can't/won't" which is a very different scenario. Also preferential creditor status means that they are the first unsecured creditor. They are however an unsecured creditor like all the others. Debt secured on the asset must be settled first.

[Ltdoptions]

Ah I meant her definition of B) was presumably someone who had not even registered an interest in settlement.

"the vast majority are wanting to sort things out and they are talking to us because they want to pay. There may well be a tiny, small minority who are determined not to. In those circumstances, we feel it is right that we retain the right to consider insolvency"

However, the question is what happens when someone simply can't afford the settlement?

[piebaps]

All I've been able to find is a minute from the Treasury Select Committee on 30 Jan. Here's the quote

Rushanara Ali, Labour, asked what can be done for people with very large amounts of money where a five year period to repay is not enough. Aiston said HMRC would only consider insolvency for the tiny minority who choose not to settle and do not have 'good intent'. HMRC do not have a maximum period, the HMRC lady said. If taxpayers do not have income that means they cannot pay it off, then something can be done.

There was no follow up question to find out what "something" was.

[Ltdoptions]

Good question. Leaving themselves wriggle room basically, so they can get houses via the back door.

[DavidD]

my wife has been given 8 years to pay and I’ve heard of people being given 10 years.

[here4beer]

my wife has been given 8 years to pay and I’ve heard of people being given 10 years.

At what interest rate? I was given 4.25%, and came forward of myself.

[webberg]

At what interest rate? I was given 4.25%, and came forward of myself.

Interest rates are fixed and the same for everybody.

Interest on late paid tax is presently 3.25%.

Interest on unpaid instalments under a TTP is 4.25%.

No mystery.

[DavidD]

Yes, 3.25% for the forward interest.

[here4beer]

Interest rates are fixed and the same for everybody.

Interest on late paid tax is presently 3.25%.

Interest on unpaid instalments under a TTP is 4.25%.

No mystery.

I don't understand the difference between the two options. My tax is late, as I didn't have enough money to pay the full bill, only 50% of it. I asked for 3 years, and was told 4.25%. How would I qualify for the 3.25% in future? Thanks.

[Delendog]

I don't understand the difference between the two options. My tax is late, as I didn't have enough money to pay the full bill, only 50% of it. I asked for 3 years, and was told 4.25%. How would I qualify for the 3.25% in future? Thanks.

TTP is taxed at 3.25% + 1% forward interest (HMRC add for their increased risk!). So you can't get 3.25% under a TTP agreement.