Time to Pay Time to Pay - Page 2
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Thread: Time to Pay

  1. #11

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    Frozen, you need to first of all take a deep breath and consider carefully the options and likely consequences.

    The Montpelier scheme you used has been struck down in Court and in the absence of an extremely unlikely reversal based on a case begin herd about the "human rights" of retrospective legislation, the debate is over.

    HMRC has won and has the power to raise final demands and to ask for surcharges if they are not paid.

    So the first think to do is take the corrective action required in order to stop any more being added to the debt.

    Then consider whether there is a reasonable excuse for having not taken the action required. I'm surprised an accountant did not take the action and you may be able to use that. In any event, it may be worth looking at whether they might be liable to compensate you. That is a legal action on your part but is worth considering.

    Once you have taken the corrective action, you know how much you owe.

    You say that you are unable to pay and I'm assuming you mean in one go, even if you realise your non essential assets.

    Therefore you need to consider what you can afford to pay each month and from that work out how long it will take to repay HMRC.

    Once you have that, make an offer to HMRC. They are likely to reject anything over 12/18 months but you need to establish an audit trail of offer made and payments beginning.

    You cannot be forced to sell the home you live in. It may however be worth speaking with an insolvency specialist as some have lending facilities which may help.

    If HMRC reject an offer to pay, they will go through the steps of asking politely, less politely, making calls/visit and ultimately threatening you with Court Action. In reality a very small percentage of cases get to Court.

    If it goes that far however, having made an offer and started paying, a Judge is unlikely to be harsh in terms of assets/sales so long as you are making a genuine attempt to pay.

    There are some debt charities worth talking to such as Step Change and CAB.

    So, calm down and look at things objectively. This is you in 2018 solving a problem that a younger and more niave person created 10 years ago. This of what you are doing as helping a friend.

    We (WTT) and Phil at DSW can help you with this. Others can as well, but make sure that whoever you deal with has some experience.
    Best Forum Adviser & Forum Personality of the Year 2018.

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  2. #12

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    Quote Originally Posted by Frozen View Post
    I have not slept for months but now I am completely drowning and in total despair.
    I feel your pain. I only got the letter from HMRC a few weeks ago and have had some very dark thoughts. I was hoping and praying that this will go away but I know it won't.

    I even thought about going with Vanquish who claim to be able to bypass the Loan Charge. I don't trust them at all but I'm desperate...

  3. #13

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    I'd suggest reading the threads and reaching out to Loan Charge Action Group
    When you feel up to it - make sure you're MP knows how you feel about HMRC's Settlement "Offer" and their Loan Charge

  4. #14

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    Quote Originally Posted by rshome View Post
    I feel your pain. I only got the letter from HMRC a few weeks ago and have had some very dark thoughts. I was hoping and praying that this will go away but I know it won't.

    I even thought about going with Vanquish who claim to be able to bypass the Loan Charge. I don't trust them at all but I'm desperate...
    Be very clear that HMRC say using a scheme to avoid the loan charge is not going to work.

    I've not seen enough of it to form an opinion, but in general terms, if you know HMRC are going to oppose something, why do it?

    Call us for a free chat.
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  5. #15

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    A question regarding TTP.

    If you agree a 5 year TTP then that also included a level of interest applied to the TTP.

    Is that fixed for the TTP duration OR does it get adjusted with the Bank base rate during the TTP term?

    Thanks

  6. #16

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    Quote Originally Posted by Delendog View Post
    A question regarding TTP.

    If you agree a 5 year TTP then that also included a level of interest applied to the TTP.

    Is that fixed for the TTP duration OR does it get adjusted with the Bank base rate during the TTP term?

    Thanks
    Based on the rate rise the other day you'll find customers should expect a rate rise (looks like they were quicker than banks to raise them)

  7. #17

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    Quote Originally Posted by Endofdays View Post
    Based on the rate rise the other day you'll find customers should expect a rate rise (looks like they were quicker than banks to raise them)
    Thanks but that hasn't answered my specific question - anyone know the actual detail?

    Thanks

  8. #18

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    Hi Frozen. Whilst I'm new to this forum I am a tax partner of some 25 years experience so not new to tax and have only joined this as so many of my clients are contractors and they have suggested I might be of some use on here.

    To answer your question, you need to take advice from an accountant, and someone other than your current accountant by the sounds of it. HMRC will only tell you their side of the argument and certainly will not give you all of the options.

    I would also steer clear of asking the scheme promoter to help you. In my experience they are more interested in covering their backside/trying to generate some additional fees rather than genuinely acting in your best interests. I suspect your accountant was the one who put you onto Montpelier in the first place and so is conflicted in the advice he or she gives you now.

    There are plenty of good advisers out there, and not all of them expensive (although the larger firms will be). I am not here to promote my business so I would simply google a few key terms (2019 loan charge, APN etc etc) and speak to someone who looks like they know what they are talking about. As a rule of thumb if someone has taken the effort to write a published article on a subject then that is probably a decent start.

    Looking at what you've said though the main thing will be to get the corrective action sorted asap and start discussing a time to pay arrangement with HMRC, otherwise the penalties will just keep piling up. That is what a good accountant will help you with. I know a lot of clients who haven't slept until they get some certainty. A time to pay arrangement will give you that and allow you to plan for the future and put it all behind you.

  9. #19

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    Quote Originally Posted by Delendog View Post
    Thanks but that hasn't answered my specific question - anyone know the actual detail?

    Thanks
    My view is that as interest is charged in late due tax, the rates applicable at the time the tax is agreed to be paid, will apply. Subsequent increases will not be applied even where these happen before the end of the time to pay period.
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  10. #20

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    Cool

    I don’t post often however this forum has given myself and my family a tower of strength the past three years and attempt there’s rarely a day I don’t quickly click on to quickly read that days posts...

    This is consuming many many peoples lives and affecting families and individuals on so many levels.

    My family is now at a cross roads regarding the latest TTP and I was hoping to share to see if anyone is in similar and was willing to share.

    We are looking at just over £100k LC many slightly less if we settle before then. We would love to fight however ashamed to say we did decide that for us we would like to enter communication with the revenue and have supplied the details of our loans.

    Between remortgaging and emptying what little savings we have we could give a lump sum of some sort no where near half and then the rest over 60 months..... this is of course assuming my work continues for the next 5 years...

    I am now at the stage I am contemplating going bankrupt and clearing all this mess. The problem being my work is purely FSA and I would no long be able to continue in my role or gain work In my industry going forward. I’ve worked my ar$e off for 25 years to get to the level I’m at and pulling the plug would not come lightly. However it would be over. And I could hopefully sleep at night again.

    Has anyone else been thinking similar? I have also considered going offshore for the next few years... however I would be leaving my wife and two small children. It’s just a mess. And I have no idea what to do...

    Any advice appreciated

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