To settle, or not to settle....

[Sky Rocket]

So, I've received my settlement offer from HMRC and I have a letter I need to sign and send back to them if I want to proceed with settlement. Whilst I'd prefer not hand over a wad of cash, I would really like this to be over and done with. They have confirmed that IHT is not currently due based on few points, but they've also requested that I inform them if the loans are written off or any event makes them worth less.

My question is, if I settle 08-09, 09-10 and 10-11, can I legitimately appeal 11-12 & 12-13 when those letters turn up, or could they refuse my appeal, given that I had already settled the above three years.

I'm half tempted to stick the money in a CTD, join Big Group and see how this pans out, however, I'm a bit apprehensive that I'm going to end up with the same tax bill, to include a penalty and NIC contributions thrown in for good measure. I don't want to end up in a worse position than I am today....

Any views would be appreciated.

[BrilloPad]

My question is, if I settle 08-09, 09-10 and 10-11, can I legitimately appeal 11-12 & 12-13 when those letters turn up, or could they refuse my appeal, given that I had already settled the above three years.

Have you asked HMRC?

I suspect they would refuse your appeal as you had already settled.

[Sky Rocket]

No, haven't asked HMRC - I'm assuming their default response would be along the lines of how can you admit liability for three years but not the remaining two....

But I'm guessing..

[Whysoserious]

HMRC want you to settle because they know the law is not on their side and they will ultimately loose. If you settle, and your scheme is successful in court, you won't receive a penny back from HMRC.

HMRC employ psychologists to write their letters to ensure they have maximum impact, maximum fear and maximum likelihood of you paying up. They do not want you to take it to court.

It's your choice, but i'd say stick it up them.

[DotasScandal]

No, haven't asked HMRC - I'm assuming their default response would be along the lines of how can you admit liability for three years but not the remaining two....
But I'm guessing..

And I'd say you are guessing right.
Once HMRC has you identified as a guy close to his breaking point and desperate for "this to be over and done with", they will simply go all in and bleed you dry any way they can. Remember they ALWAYS go for (what they perceive as) the low-hanging fruit.
Make no mistake - everyone in Big Group would love to put it all behind.
But frankly for most of us, HMRC's "offers" and general attitude are 100% unacceptable as it stands.

[chubacabra]

I've got a similar exposure to you OP and wrangled with wondering what to do for a long time in the run up to the settlement op deadline. It just felt like nothing had been proven yet and that I was being bullied into making a decision to settle. I decided a while back to join BG and take up the fight.

I've made a payment on account for the current outstanding years (08-11) and am preparing for the next few years to be on their way shortly.

The guys above sum it up nicely I think - HMRC are looking to pick off the low hanging fruit and are counting on people coughing up without a fuss. They know that most people are unable to fight this in court due to the huge costs involved, it has also been made clear that they will go through every court there is regardless of the merits of doing so.

Big Group have really strong numbers already and a strategy that I certainly feel is realistic and likely to succeed. We are stronger as a single united voice.

If you are considering it, definitely give Graham an email. I'm sure can answer any questions you may have.

The forums are great here, but are public and HMRC do like to read them (hello HMRC ) so disussion is limited.

[webberg]

In theory, because the settlement offered is outside the self assessment process, admitting that loans are taxable income for pre 2011 years should not impact your ability to claim that post 2011 arrangements are not taxable.

In practice, I fear that a questions from HMRC such as "you used scheme ABC and agreed it was taxable, the scheme in 2012 was pretty much the same, why is it not taxable?" could be a tricky one.

Be careful on the settlement dates.

You should have agreed this before 30/9/15.

If you have not and if you have not got an agreed extension, then you may already be too late.

It's unfortunate that the wording in the pack gives the impression that you have 90 days from 30/9/15 to agree the settlement. This is INCORRECT. The 90 days is the period between settlement and payment.

If you have not already done so, check NOW.

[foobar]

It is quite simple - You can roll over and kowtow to HMRC or you can man up and fight. If you fight and you lose at least for the rest of your life you will not be wondering 'what if..' unlike those timid souls who never tried at all.

[chubacabra]

It is quite simple - You can roll over and kowtow to HMRC or you can man up and fight. If you fight and you lose at least for the rest of your life you will not be wondering 'what if..' unlike those timid souls who never tried at all.

^^ This...

Sums up my thought process exactly when I was trying to decide

[LandRover]

It is quite simple - You can roll over and kowtow to HMRC or you can man up and fight. If you fight and you lose at least for the rest of your life you will not be wondering 'what if..' unlike those timid souls who never tried at all.

Couldnt agree more, however with multiple APNs landing on peoples doormats then unfortunately people will be wiped out and unable to fight. There are people selling assets, there will be people going bankrupt, unfortunately they can't hit the reverse button and carry on as before even if we all win our day in court.