Reply to: To settle, or not to settle....

[DonkeyRhubarb]

2) The interest liable cannot be increased further - HMRC cannot charge interest on interest according to this

So though I would be keen to settle, I'm now wondering if there is any issue in fact in just not settling - the £4000 can be paid whenever HMRC eventually get a court result.... it won't increase.

Correct.

If you've paid the APNs, no further interest will be added.

[DDoyle]

Interest on Interest?

First post so please go gentle

I received APN's for two years and have paid these (partly through obtaining a personal loan) - I would like to clear things altogether. I received an offer of settlement through and the only remaining amount to pay is the interest - around £4000.

I am unable to pay this amount now and wish to pay over 6-9 months. HMRC would like me to detail why I cannot pay and will then look into the details. On the phone they stated they would need further details of the household income etc, which seems rather heavy handed considering the amount.

My question at this stage is whether if HMRC are unwilling to be reasonable on repayment terms on the interest, and I decide not to accept the settlement, what the likely implications are? My understanding is this:

1) I've paid the calculated income tax that would be due if HMRC were successful in court.
2) The interest liable cannot be increased further - HMRC cannot charge interest on interest according to this

So though I would be keen to settle, I'm now wondering if there is any issue in fact in just not settling - the £4000 can be paid whenever HMRC eventually get a court result.... it won't increase.

Maybe I'm reading this all wrong though.

Thanks.

David.

[chubacabra]

Is HMRC offering a 'discount' to settle?

Nope no discount. The 'discount' offered during the now lapsed settlement opportunity was that there were no penalties.

You can understand why most opted out of that one :P

[Vegas]

Is HMRC offering a 'discount' to settle?

[DotasScandal]

I did try and join the BIG group recently but it said it was closed for new members. I'll try again now.
EDIT just tried again and it says new registrations disabled!

You tried to register for BG's forum.
That's not the right procedure.
See here instead for modalities and conditions.

[ric_77]

This has been covered a billion times on other threads. Do we really need to revisit this again?

Anyway :

1/ APN = payment on account, doesn't include penalties, IHT, interest. Theoretically refundable if and when HMRC lose in court against the provider. Settlement = admittance of guilt. You pay whatever HMRC declare you "owe", plus IHT if applicable, plus interest. You give up your rights to taking part in litigation and to ever see your money back, even if the scheme is proved successful by a tribunal.

2/ No. If you settle, you drop out of the fight.

3/ No. By settling you are renouncing that right.

Hope this helps. Join Big Group and resist HMRC.

Appreciate the reply, i'm in a pretty confused (and stressed) state right now, I have about a week max to get in touch with HMRC.

I did try and join the BIG group recently but it said it was closed for new members. I'll try again now.

thanks

EDIT just tried again and it says new registrations disabled!

[DotasScandal]

evening,

I'm in this exact position right now, I've sought some basic advice and have come to the conclusion that i will pay (settle?) the APN which is due shortly.

My scheme provider is taking this to a JR though so I'm a not entirely clear on what my best option is.

1, what is the difference between paying the APN and 'settling'?
2, If I pay, does that mean my provider will still include my case in their JR and fight on my behalf?
3, If i pay and my providor wins any case, am I entitled to get this back?

cheers

This has been covered a billion times on other threads. Do we really need to revisit this again?

Anyway :

1/ APN = payment on account, doesn't include penalties, IHT, interest. Theoretically refundable if and when HMRC lose in court against the provider. Settlement = admittance of guilt. You pay whatever HMRC declare you "owe", plus IHT if applicable, plus interest. You give up your rights to taking part in litigation and to ever see your money back, even if the scheme is proved successful by a tribunal.

2/ No. If you settle, you drop out of the fight.

3/ No. By settling you are renouncing that right.

Hope this helps. Join Big Group and resist HMRC.

[Grim Reaper]

Ric if you pay an APN, it's just an up front payment. If HMRC lost the case then they would refund you.
If you chose to settle then it could be considered as admitting liability and I would be surprised if you saw the money again. The same would apply for other tax years that you used the same or similar schemes.

If you are in any doubt of advice given to you by your scheme provider then join Big Group. The advice and information on there from other members and WTT is worth it.

[ric_77]

evening,

I'm in this exact position right now, I've sought some basic advice and have come to the conclusion that i will pay (settle?) the APN which is due shortly.

My scheme provider is taking this to a JR though so I'm a not entirely clear on what my best option is.

1, what is the difference between paying the APN and 'settling'?
2, If I pay, does that mean my provider will still include my case in their JR and fight on my behalf?
3, If i pay and my providor wins any case, am I entitled to get this back?

cheers

[DotasScandal]

WHS
...and when you do talk to them... don't fall for their pressure tactics!!!

[convict]

Talk to them. Don't pay. Buy a CTD for the same amount to stop interest accruing and the join Big Group.

[UMTS786]

White Collar CLSO

One the one hand, you signed, so....

On the other, if there really is such a clause, you could let the agreement "be terminated".
If you call HMRC, prepare for them doing everything to persuade you to NOT back out of the agreement...

Quite frankly, the sum is quite trivial compared to what people here "owe" on average, and more than one would tell you to just write it off and be done with the whole thing. Of course that is not our advice.

So if I don't want to pay, shall I call them or just ignore it and Join Big Group. As I understand after reading posts through forums its a non DOTAS scheme and APN is unlikely and HMRC still don't have a case to issue a Follower notice and hence no APN. So unless it gets into litigation nothing should be paid to HMRC in Settlement.

I am new to this forum so please forgive my ignorance. I am just trying to find a way not to pay them. As the scheme provider took a hefty fee when I joined the scheme and now HMRC is asking for money, which doesn't feel right or even legal.

[DotasScandal]

Jumping the gun a bit there as you have no data to back that up with.

Read HMRC's reply to the FOI request (read it between then lines, that is). It's pretty damning.

[Fred Bloggs]

Just pay it and be done. You got away lightly. Less than £5k.

[bluemonkey71]

Did you sign the acceptance letter?

If not, just go silent and leave them wondering...
If they ask, just let them know you changed your mind.

The uptake of the CLSO was so dismal that HMRC won't even release the data

Jumping the gun a bit there as you have no data to back that up with.