Ok - now I'm confused

[InNZ]

A quick update.
Having had another envelope from HMRC on 28 Dec 2022, I emailed them to ask what my origin letter actually meant. Finally got a response (3 Feb) and got a sort of apology "I would also like to apologise for how our letter of 24 August 2020 was worded as it has conveyed the wrong impression to you" - so my fault then!.

Anyway, Eek has it correct - HMRC want the money!

Maybe some good news for the email - a some year's loans are now not included: 2002/3 and 2003/4 and some loans from 2004/5 (all from Edge). Some loans for 2004/5 are included (Greenbay) and so are 2005/6 (Edge again). According to HMRC I have open enquiries for these 2 returns opened Jan 2007 and Jan 2008 respectively.

I have some questions if any of you could help?
1) Presuambly HMRC can keep these open enquiries (CoP8 from memory) open indefinately? I might be remembering incorrectly, but I seem to recall that in the booket I was sent at the time, HMRC said they would keep me updated on a yearly basis. But that could well be a false memory.
2) Having agreed to settle several years ago for ALL my loans (HMRC then never actually asked for the money) would I be correct in thinking that the settlement amount will now decrease as not all my loans are included?
3) My original settlement amount didn't include any interest - are HMRC likely to include that now?

Thanks

[Chevalier]

I have some questions if any of you could help?
1) Presuambly HMRC can keep these open enquiries (CoP8 from memory) open indefinately? I might be remembering incorrectly, but I seem to recall that in the booket I was sent at the time, HMRC said they would keep me updated on a yearly basis. But that could well be a false memory.
2) Having agreed to settle several years ago for ALL my loans (HMRC then never actually asked for the money) would I be correct in thinking that the settlement amount will now decrease as not all my loans are included?
3) My original settlement amount didn't include any interest - are HMRC likely to include that now?

Thanks

Yes - Unfortunately HMRC can leave enquiries open indefinitely. Of course you can force the issue by applying to the FTT for closure, but few do.

Any years that were not “open”, are now beyond HMRC’s reach so that’s the good news. The bad news is however that HMRC have now found their magic key, and the loan charge was complete unnecessary - at least for those considered to have an employer (Hoey) (NB it may be worth checking which type of scheme you were in)

HMRC will definitely want interest unfortunately.

[InNZ]

So - an update, after almost 3 years.

On 21st May, I received an envelope from HMRC. Annoying on several fronts. First off, they have got may name wrong AGAIN!. How many times do I need to tell them. Second, I have asked them to ONLY ever email me because a) envelopes do go missing between UK and NZ and b) it can sometimes take a month to get here. Case in point, one of the documents in the envelope was dated 21st April, the other the 27th April (I got them 21st May). Then, one page states that I need to pay by 17th May and another by the 18th (yeah - well done HMRC, nice and consistant!) otherwise I'll be liable to a 5% surcharge.

Anyway, they have finally worked out how much I owe them. On my initial glance I was quite chuffed as the amount is considerably less than the figure I had agreed to settle years ago. Then I saw how much interest was being applied (loans from 2005 and 2006). Boy was I annoyed! How come it's taken them 3 years to work this out? The cynic in me thinks they held on as long as possible to get as much interest as possible (and I reckon they knew the election was coming so thought they'd better grab it now just in case Labour changed things).

Fortunately I can just about cover the amount but am having to sell assets in order to do so. And although it's a wrench I'm am so glad that it will all be over.

Or will it!!!!!!

[woody1]

Count yourself lucky you weren't in the scheme any earlier. The late payment rate for years 2001-2008 was averaging around 7%, so for 2001/2 the accrued interest would now be over 100% (ie. more than doubling the bill). At least rates were low 2009-2021.

https://www.gov.uk/government/public...interest-rates

If you settle, I'm sure that will be the end of the matter.

[cojak]

If you settle, I'm sure that will be the end of the matter.

And get them to state that in writing...