HMRC recovery powers after APN

[dangerouswhensober]

I have been pondering the likely course of future events next year after I receive the expected APN in relation to past "Discovery" assessments by HMRC.

(In my case, these assessments total ~ £50,000 for EBT scheme membership over three years to April 2011).

If/when I receive an APN, I will not have the ability to pay this amount - or even one tenth of this amount. So I was assuming that it would be bankruptcy (initiated by HMRC), followed by a poor & painful couple of years, and then a clean sheet - all for a patently unjust claim.

Then this morning I read an article (in the "Times") describing the new (increased) HMRC powers to deduct alleged tax debt money at source from salary. These are described here:

UHY Hacker Young - Taxman set to clawback up to £17,000 from people?s pay packets
Tax Underpayment? HMRC Wants to Collect up to £17,000 from Employee Salaries

(BTW - these powers are not new - but the limits of exisiting powers are being raised, as of next year - the Times article was just a reminder).

So now it seems that, assuming they deduct the maximum £17,000 per year, HMRC want me to work for them for the next three years to pay off their alleged tax claim on my past earnings.

If this happens, for me it will a step too far in the HMRC persecution process - I WILL leave the country and go to work in a less hostile environment (which could mean just about any other country in the world). And I'll be careful to pick one which doesn't have a reciprocal tax reclaim treaty with the UK.

The net upshot will be that the UK WILL lose the benefit of my technical abilities, and WILL also lose the normal UK tax I would pay on my future earnings.

I'm pretty sure I'm not alone in this viewpoint - would anyone else like to comment ?

[DonkeyRhubarb]

Alternatively you could go voluntarily bankrupt as soon as you receive the APNs.

Some people have already left the country and I suspect there will be quite a few more in the next year or two.

[dangerouswhensober]

Alternatively you could go voluntarily bankrupt as soon as you receive the APNs.

Some people have already left the country and I suspect there will be quite a few more in the next year or two.

I believe that where a voluntary bankrupt owes debts to HMRC, then HMRC customarily oppose the voluntary bankruptcy application and seek an earnings attachment order to reclaim the debt amount - I seem to recall that Rob has previously advised this on this or another thread.