Negotiating a settlement with Hmrc

[BrilloPad]

I have been outside UK for 4+ years now and am not earning in the UK at all for 6+ years. Could you share the contact with me please.
(I need it urgently as I have just received their letter today stating that I respond in 3 days time.)

PM sent.

Out of interest someone told me yesterday the amount they were quoted by an adviser - I could not believe it. Well, I suppose I have dealt with HMRC and not much surprises me anymore.

[vishaal]

Yes. Someone from MP got 5 years to pay. No interest, no penalties. Anything else would have been bankruptcy.

You really need an adviser though - I will PM you a contact.

I have been outside UK for 4+ years now and am not earning in the UK at all for 6+ years. Could you share the contact with me please.
(I need it urgently as I have just received their letter today stating that I respond in 3 days time.)

[BrilloPad]

Unfortunately I'm getting "you do not have permission to access this page" when trying to view my own profile and there are no links appearing anywhere I can see to allow me into PM. @Administrator is my account not fully enabled yet please? (But seems I can post here, which is strange)

Its just added now - I will PM you.

[BledOut]

Please grant PM rights.

Unfortunately I'm getting "you do not have permission to access this page" when trying to view my own profile and there are no links appearing anywhere I can see to allow me into PM. @Administrator is my account not fully enabled yet please? (But seems I can post here, which is strange)

[webberg]

Whilst I'm sure that the commentary above is accurate and represents real situations, I feel that I must add some caution to proceedings.

First, HMRC is UNABLE to reduce or mitigate interest that has arisen on unpaid tax. If you have agreed that the tax is due and it is paid late, then interest arises and HMRC has no power to put aside the legal obligation to collect it. To do so would be to flout the law and internal policy.

Second, the terminology here has perhaps suffered some mission creep.

Settlement is you agreeing to pay whatever sum you and HMRC agree is due. The mechanics of that settlement are achieved via either appeals against assessments being withdrawn (and tax becoming due) or taking up the offer of the informal and discretionary settlement, the latest of which was published in November 2017.

Once settlement has been agreed, you can discuss how to pay it. We call this a "time to pay" arrangement. This is where you and HMRC agree that you will pay £x per month over y period. If you pay over a period, HMRC is in the habit of charging forward interest.

However, settlement is agreeing the value of tax and interest owed, time to pay is agreeing the payment plan.

Third, Unless you can find an individual HMRC prepared to risk unlawful and career threatening action, no adviser can "negotiate". The terms are fixed and the only discussion is over the time to pay.

Fourth, advisers should for preference be qualified and/or come with a verifiable history of having some tax knowledge. Personally I would say that you should avoid those with historic connections with schemes you are trying to settle as with the best will in the world, the potential for a conflict of interest is high. (I'm sure that many professional advisers do their best to guard against such conflicts and in settlement work, this is a more limited "problem", but be careful and research who you choose.

Lastly, LCAG for all their good work in political circles and raising the profile of one aspect of this whole sorry mess, are a lobby and action group. They are not advisers. I'm sure that they have good contacts with advisers (I know that they do with us) and that their members can produce many examples of how HMRC treats and has treated people which may be useful. However, they do not agree settlement or negotiate time to pay with HMRC.

You can do that yourself. You can ask/pay and adviser to do it. You can ask/pay a scheme promoter to do it (although I recommend you don't).

You can ask LCAG to do it and for all I know they will. However LCAG is a group of individuals in the same situation as you and whilst a pool of knowledge to draw upon is good, it may not be what is needed. It may be that LCAG can recommend a course of action that has worked for others. LCAG may recommend an adviser. Just ask them what they can and not do.

[BrilloPad]

Hi BrilloPad, I'm someone in a complete mess re Montpelier and could very much do with a good adviser quite urgently, is there any chance you can also PM me the details too please? I have only just signed on to the forum and don't appear to have the option to send anything direct to you yet, so hope you see this. Much appreciated if you can help.

Please grant PM rights.

[Iter]

Send details to LCAG so they can give more damaging evidence about HM to the review

[nickersan]

Not wanting to put the frighteners on anyone - I have a liability from 4 years on Monpelier of well over £100k (including interest). After reaching the end of the road with the Follower Notices, I chose to take 'corrective action'.

With the help of an advisor, this began with my appeals being withdrawn and me submitting income & expenditure statements to HMRC. This seemed to be proceeding as expected with HMRC asking me to make a time-to-pay proposal, which my advisor did (it took all my disposable income) and which would clear the amount owing in about 2 years.

No response was ever received to this proposal and under a week later I had a field-force officer knocking on my door.

In response to this, I submitted a revised proposal enabled by borrowing from close family, which would clear the amount owing in about 1 year.

Again no response was ever received and within a week or so field-force were back at my door demanding immediate and full payment.

I have now made an official complaint naming those involved, which I’m hoping with go some way to getting an agreement in place.

If people really have manged to agree time-to-pay over extended periods, I’d be really interested to know the details.

[BledOut]

Yes. Someone from MP got 5 years to pay. No interest, no penalties. Anything else would have been bankruptcy.

You really need an adviser though - I will PM you a contact.

Hi BrilloPad, I'm someone in a complete mess re Montpelier and could very much do with a good adviser quite urgently, is there any chance you can also PM me the details too please? I have only just signed on to the forum and don't appear to have the option to send anything direct to you yet, so hope you see this. Much appreciated if you can help.

[BrilloPad]

What's MP? I'm told there is no negotiating. You simply pay what 'you owe' if you chose to settle?

Montpelier.

If you have the money there is no negotiating. HMRC will sometimes settle for something rather than bankruptcy - even if it means paying over 40+ years.

I have not heard of anyone doing that on their own.

[here4beer]

Yes. Someone from MP got 5 years to pay. No interest, no penalties. Anything else would have been bankruptcy.

You really need an adviser though - I will PM you a contact.

What's MP? I'm told there is no negotiating. You simply pay what 'you owe' if you chose to settle?

[badzmaru]

Yes. Someone from MP got 5 years to pay. No interest, no penalties. Anything else would have been bankruptcy.

You really need an adviser though - I will PM you a contact.

Hi can you pm me the contact too?


Sent from my iPhone using Contractor UK Forum

[administrator]

PM rights granted.

[BrilloPad]

I have just received an updated self assessment tax return for 2003/04 & 2004/05 after withdrawing my appeal that includes £20k interest. Has anyone had any success negotiating a settlement with HMRC to not pay the full amount of interest??

Yes. Someone from MP got 5 years to pay. No interest, no penalties. Anything else would have been bankruptcy.

You really need an adviser though - I will PM you a contact.

[Harry1]

I have just received an updated self assessment tax return for 2003/04 & 2004/05 after withdrawing my appeal that includes £20k interest. Has anyone had any success negotiating a settlement with HMRC to not pay the full amount of interest??