HMRC Enquiry letters on Loans from EBT and other schemes

[AngryMan]

You have it now AM.

Thanks for doing that. Appreciated

[objectwin]

Thanks for doing that. Appreciated

Can I also have access to PM, Michael?

Thanks,

[lumineer]

And why not just ignore them now that youre out of country? Is something youre considering or have taken advice on?

I have not considered that as the plan is to return to the UK sometime in the next year or two. Figure it's better to stay onside as much as possible...

[bandemelbs]

Living outside UK for over 5-years

I’d be curious to know what position you are taking and more broadly, what the options are for those that left the UK some time ago as my wife is in the same situation. I’m thinking either ignore it or declare UK bankruptcy but I’m not sure what the longer term ramifications of either approach might be.

[horrada]

I’d be curious to know what position you are taking and more broadly, what the options are for those that left the UK some time ago as my wife is in the same situation. I’m thinking either ignore it or declare UK bankruptcy but I’m not sure what the longer term ramifications of either approach might be.

I believe you need to have lived in the UK for at least 6 months to make yourself bankrupt. Then you need to make bankruptcy to the courts generally in person and within 3 months of leaving UK. Outside the EU bankruptcy can be completed upto 3 years after leaving UK.
So in your circumstance, you would not be able to make yourself bankrupt.
That is what I have read anyhow, so Im not an professional in this area.

[bandemelbs]

So on that basis, shouldn't any claim by HMRC be null & void as I'm no longer a resident and haven't been for almost 6-years? Either way, I'm curious to know what their reach is and what they intend to do for people in our situation.

[LisaContractorUmbrella]

So on that basis, shouldn't any claim by HMRC be null & void as I'm no longer a resident and haven't been for almost 6-years? Either way, I'm curious to know what their reach is and what they intend to do for people in our situation.

I think it would depend on whether or not HMRC have a dual taxation agreement with your country of residence

[ASB]

It doesnt need a dta. Its a civil debt. Enforceable through the courts. And they do. In some countries its rather easier. There are reciprocal arrangements which give hmrc all the powers they need to seize. Also of course in some countries the debt will become a criminal matter.

best to search for the country you are resident in and how hmrc chase.

[cojak]

I think it would depend on whether or not HMRC have a dual taxation agreement with your country of residence

HM Revenue & Customs: Double taxation agreements - an introduction

[DonkeyRhubarb]

I think it would depend on whether or not HMRC have a dual taxation agreement with your country of residence

Only a handful of countries have a DTA with the UK which provides for debt recovery.
DMBM560230 - Debt and return pursuit: foreign cases: Mutual Assistance in the Recovery of Debt (MARD) (non-EU countries): scope of the MARD provisions

It's more straightforward for HMRC if you reside in the EU where there is a MARD agreement between member states.
DMBM560030 - Debt and return pursuit: foreign cases: Mutual Assistance in the Recovery of Debt (MARD) (EU States): referring cases to the MARD team
DMBM560015 - Debt and return pursuit: foreign cases: Mutual Assistance in the Recovery of Debt (MARD) (EU States): about the agreement

It's best to seek legal advice on this in your country of residence.