How Soon Do HMRC Want The Money

[kryten22uk]

So you have 30 days to sort a Time To Pay option? Or this needs to be done before this point? thanks

My experience is without TTP. But arranging TTP is part of the negotiations stage, which doesn't have the same defined timeframes. Once you have agreed your liability and your TTP option, then I imagine you'd still get sent a Deed to sign/witness/return within 30days.

[here4beer]

My experience is without TTP. But arranging TTP is part of the negotiations stage, which doesn't have the same defined timeframes. Once you have agreed your liability and your TTP option, then I imagine you'd still get sent a Deed to sign/witness/return within 30days.

Ok, thanks. I'm fairly sure I need TTSMH*.



*time to sell my house

[blackandblue]

I got my final "Settlement Deed" in the post last week. This is the contract that I need to sign, and have witness sign too, before sending to HMRC to sign. You get one month to sign and return the Deed, and there is a deadline date in the paperwork for this to happen. The paperwork says that if it is not signed by this date, then your opportunity to settle is withdrawn and the Loan Charge will be applied. Thereafter the Deed states I have 30 days from the date at which you sign, to pay the tax.

My understanding is
1.) You don't owe any interest on the amount to pay if you have sent your willingness to settle by 30th Sept 2018 (which I hear now is extended till 5th April 2019).

2.) Once you have received the settlement, you have 30 days to pay in full and no further interest will be charged. However in case of TTP, interest will be charged at 4.2%. I am not 100% sure if it is the date you receive the settlement (and you agree on figures) or it is from the date you sign it, because you are agreeing(on this date) to settle.

I received my settlement few weeks back and i raised a question on the interest calculations for one of the tax years. I have had acknowledgement that my question has been passed to a senior member but it has nearly been a month, I have had no response back. I have called HMRC few times but only get assurances that it is being looked into but no communication. My only concern being that no further interest will be charged on the pending amount as it is not being delayed from my side.

What do experts on this forum think?
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Beaten black and blue by HMRC

[Iter]

Re to point 1 you may owe interest as this is for late payment at 3.25 from the tax year date it was originally owed, to I believe Sep 18. Ie if tax year was 13/14 then tax is calculated in settlement from jan 15 to Sep 18

[blackandblue]

My understanding is
1.) You don't owe any interest on the amount to pay if you have sent your willingness to settle by 30th Sept 2018 (which I hear now is extended till 5th April 2019).

2.) Once you have received the settlement, you have 30 days to pay in full and no further interest will be charged. However in case of TTP, interest will be charged at 4.2%. I am not 100% sure if it is the date you receive the settlement (and you agree on figures) or it is from the date you sign it, because you are agreeing(on this date) to settle.

I received my settlement few weeks back and i raised a question on the interest calculations for one of the tax years. I have had acknowledgement that my question has been passed to a senior member but it has nearly been a month, I have had no response back. I have called HMRC few times but only get assurances that it is being looked into but no communication. My only concern being that no further interest will be charged on the pending amount as it is not being delayed from my side.

What do experts on this forum think?
__________________________________________________ ________________________________________
Beaten black and blue by HMRC

Thanks Iter for point out. I was not clear enough.

Sorry, what I meant in 1 is that no interest is to be paid after 30 Sept 2018 if the settlement figures are sent to HMRC and if you are waiting for them to come back with final calculations and you wish to accept the offer to settle. Any interest accrued till 30th Sept 2018 from the previous years is to be paid.

[Iter]

Yes if you settle under the recent terms I believe they only calculated interest upto Sep 18, in my experience any delay caused by them should mean you don’t get penalised.

[blackandblue]

Yes if you settle under the recent terms I believe they only calculated interest upto Sep 18, in my experience any delay caused by them should mean you don’t get penalised.

Spoke to HMRC today and phone was answered pretty quickly. The lady on the other side was very helpful and polite. I told her that I want to record this call and she happily said that "yes, please feel free to so do as this call is anyway being recorded".

Spoke to her for about 20 minutes and she answered each query very clearly and exercised caution on the points she was not 100% clear about. One thing which I learnt today that once offer is made by HMRC, you have upto 30 days from the date of sending to either accept or reject it. Once accepted then you will get upto around 3 weeks to make the payment. So roughly around 50 days to pay once HMRC sends the letter but please note upto in the statement.

End of the day, I do get a feeling that many of the people working at HMRC are quite good and helpful. Although different peoples in the group might have had varying experience with HMRC but in last 3 to 4 months my opinion about HMRC has changed from negative to neutral/positive. But hey, that's my thought based on my recent experiences with them!!

[InNZ]

Do HMRC send out an invoice or something saying where and how to pay? I wouldn't have a clue where to pay.
FYI - paying it all in one lump, and I didn't have to pay interest.

[Iter]

Following the links on gov site settlement payments can be made to thier Shipley account, however they do send out a payment form ......

[Iter]

You just need to ensure the reference number is added to payment