Ability of HMRC to enforce APNs in other countries

[Loan Ranger]

With regards to 3, this may keep the wolves at bay for collection of APNs.

However the Loan Charge will be a new tax in a new year right? Yes If so unless the relevant country *still* doesn't have a MARD type agreement with the UK when the LC lands then this won't offer any protection from HMRC attempting to collect the LC from non-residents.

This may buy some valuable time, but HMRC will still come knocking.

I know. I'm not suggesting anyone do the following, I'm just throwing it out there.

-------------------------------

1) Take up CLSO2 with a payment plan (TTP).
2) This will mean withdrawing any appeals against assessments.
3) The LC will no longer apply.
4) At some point, stop paying.

If the tax years are not covered by a treaty, HMRC won't be able to request the assistance of the local tax authorities.

[Loan Ranger]

Hi, tried to PM you but don't think I'm allowed, please get in touch if you are also caught up in this and now in NZ.

Sorry but I started getting too many messages, so I turned it off.

[Loan Ranger]

One other thing...

Even if HMRC do ask your country to collect the LC, your local tax authority might agree to a more accommodating payment plan than HMRC would accept.

10 years, 20 years, $100/month

Again, worth getting the advice of a local professional.

[Endangered Kiwi]

NZ advice

Hi, tried to PM you but don't think I'm allowed, please get in touch if you are also caught up in this and now in NZ.

I have sought legal advice in NZ and am happy to share that and the UK advisor's thoughts on that with any NZ residents caught up in this mess. Its always good to know you're not the only one. Not sure if I can pm yet as I have only just joined this forum after reading it on and off for a couple of years.

[Loan Ranger]

By the way...

I forgot to mention that HMRC initially threatened the guy with getting his local tax authorities to enforce the APNs.

When he later challenged them about the treaty not covering tax years before 2010, they backed down immediately and were all apologetic.

Just because HMRC say they will do something, doesn't mean they can.

[EBTContractor]

Interest

Won't such a long 'payment plan' just add an insane amount of interest?

[webberg]

Won't such a long 'payment plan' just add an insane amount of interest?

HMRC will usually charge around 4% interest on unpaid amounts.

(Don't confuse this with the 3% or so interest on unpaid tax. That is added to the tax bill and then if you pay in instalments the above interest is applied to unpaid amounts.)

[EBTContractor]

HMRC will usually charge around 4% interest on unpaid amounts.

(Don't confuse this with the 3% or so interest on unpaid tax. That is added to the tax bill and then if you pay in instalments the above interest is applied to unpaid amounts.)

4% p.a.?

[webberg]

4% p.a.?

Yes.

For example.

You owe £10,000 for say 2014/15.

Due date is 31/1/16.

You agree to pay 31/10/18

You have interest on unpaid tax of £10,000 x 3% x (33/12) = £825.

Your total bill is £10,825.

You agree to pay £5,000 on 31/10/18 and then the balance over the following 24 months.

So on 1/11/18 you owe £5,825

If you pay £252.95 a month, you pay the above balance plus £245 and change in default interest.

[Delendog]

Yes.

For example.

You owe £10,000 for say 2014/15.

Due date is 31/1/16.

You agree to pay 31/10/18

You have interest on unpaid tax of £10,000 x 3% x (33/12) = £825.

Your total bill is £10,825.

You agree to pay £5,000 on 31/10/18 and then the balance over the following 24 months.

So on 1/11/18 you owe £5,825

If you pay £252.95 a month, you pay the above balance plus £245 and change in default interest.

I believe the calculation is:-

Amount owed x ((annual interest + forward interest)x(months/12)/2)

annual interest is currently 3%
foward interest is currently 1% (this is additional interest HMRC charges because of increased risk!)

so in above example 5825x((3%+1%)x(24/12)/2) = 233 + 5825 = 6058

252.42 per month.