Still waiting to settle 4yrs on

[woody1]

I don't think many people who used schemes come here much now. Many have probably long since settled due to the loan charge but a lot also joined WTT Big Group who have their own private forum.

[Jumper]

Thanks all. I will look into the info and consider MP contact in the near future.

interested to know whether there are still others out there that haven’t settled but attempted to for such a long time. I understand some are less fortunate and had to go down debt collection and bankruptcy route but this site used to be filled with tax payers going through the settlement process. Why does it seem like I’m the only one left!

appreciate the inputs! Will look to keep this thread updated as it may benefit others in the future.

Jumper

[woody1]

I suspect I was thinking of the devolved representatives, not UK MPs....

Or raising a general taxation matter (eg. about legislation like IR35, MSC, Loan Charge); then you are right that the MP will refer it to a Treasury Minister.

MPs are certainly a good port of call for issues like Jumper has where HMRC are dragging their heels settling.

[malvolio]

I'm sorry but you're wrong, as others on this forum can testify. MPs will take up personal tax matters, on behalf of constituents, directly with HMRC. It's part of their remit in the same way that they can deal with problems constituents have with other departments like DWP, NHS.

Ah. The actual process is here. I suspect I was thinking of the devolved representatives, not UK MPs....

[woody1]

They deal with it by referring the issue to the relevant ministerial contact. So yes, they deal with it, but HMRC doesn't report to MPs, only the Treasury, so it's all a bit hands off. That doesn't mean that HMRC won't react if an MP raises an issue with them, of course.

The mechanism doesn't really matter, what matters is that it works. Usually...

I'm sorry but you're wrong, as others on this forum can testify. MPs will take up personal tax matters, on behalf of constituents, directly with HMRC. It's part of their remit in the same way that they can deal with problems constituents have with other departments like DWP, NHS.

[malvolio]

Actually they can, and do. Dealing with HMRC, on behalf of constituents, represents a significant part of their case load. Which is not surprising given how inept HMRC can be.

Often a prod from an MP is enough to get things moving.

They deal with it by referring the issue to the relevant ministerial contact. So yes, they deal with it, but HMRC doesn't report to MPs, only the Treasury, so it's all a bit hands off. That doesn't mean that HMRC won't react if an MP raises an issue with them, of course.

The mechanism doesn't really matter, what matters is that it works. Usually...

[woody1]

They likely can't help directly...

Actually they can, and do. Dealing with HMRC, on behalf of constituents, represents a significant part of their case load. Which is not surprising given how inept HMRC can be.

Often a prod from an MP is enough to get things moving.

[malvolio]

Get your MP involved, in person if they run surgeries (too many can't be bothered these days...). Make sure you have copies of relevant correspondence to hand.

They likely can't help directly but they will have to put it in front of the relevant minister. After that, in theory, things should start moving - but given HMRC are claiming chronic lack of staff across the board, it will still be slow.

However, it is your only real viable option. HMRC, unbelievably, have no duty of care to their "customers"

[Jumper]

Hi,

Interested to know other people’s experience and thoughts.

I was one that took a chance and used an offshore scheme years back. Thankfully I chose to leave after 2yrs but I ultimately accepted that I was caught by the loan charge when introduced.

I eventually decided to settle the loan charge however after the disclosure window. After contacting HMRC and attempting to settle, months passed as there didn’t seem to be an established process after the disclosure window closed. The online forms/portals were closed and HMRC call centres were unhelpful.

I decided to use a well known and respected tax adviser mentioned numerous times on this site to help with settlement. I disclosed the loan charge through amending my self assessment and paid the entire loan charge, interest and penalties. This was over 4yrs ago.

Whilst I waited months to formally settle, my tax advisor and HMRC eventually agreed that I had in fact overpaid. A large credit sat on my personal tax account and I pushed for settlement for closure and for an eventual refund. HMRC declined to return any funds until settlement was reached.

Years passed and I was eventually notified that HMRC had applied to Companies House to have my struck off LTD company reinstated after several years. They succeeded and I was issued a new tax bill consisting of both personal tax and Employers NICs. HMRC failed to acknowledge that I had already paid the loan charge years earlier and held their line that it didn’t constitute as settlement. The only way I could settle was an agreement that the funds paid to the loan charge was transferred from my personal tax account to my business tax account so settlement could be reached under the LTD. The tax advisor stated it’s an unusual request which they hadn’t come across before but saw no other option.

I signed the documentation and was provided with a revised calculation. After the calculation was deemed to be accurate by my tax advisor I paid the remaining tax on account late last year.

I’m still waiting to reach formal settlement as I’ve waited for an agreement to sign. I last received a letter from HMRC earlier this year about the new enquiry and whether I wanted to put my case on hold. I declined, advised I’ve settled all that is owed including tax, penalties and interest. I just wanted settlement yet I’m still waiting. In the meantime my large credit still remains sat in my personal tax account. I can’t access it, HMRC decline to refund it and now I’m PAYE (inside IR35) I can’t even use it towards my future personal tax.

My tax advisor says to be patient, this is no criticism on them. HMRC are very slow and chasing them doesn’t help but I can’t see an end. I can’t see closure and I can’t see me getting my money back sat on my account despite HMRC agreeing and providing calculations that it’s due to be refunded.

i feel like because I’ve paid I’m now at a disadvantage, they have all the tax so there is no value in them finalising my case but then the sceptic in me makes me think they’ll look at some other reason to come back for more money before I’m issued a settlement.

Some have spoken about getting local MPs involved. Is my case a norm or do I have a point that I should be able to settle and reach closer.

Thoughts?