Earlier settlement than payment terms and interest

[panders]

Hi everyone
I was given 10 years to pay approx £10K, which had approx £2K in interest charges added £12K total. To try and reduce the interest I managed to repay the £10 tax owing by borrowing from elsewhere and contacted HMRC asking them to recalculate the amount owed as I had settled to tax owing.
I've just heard back from them say I need to repay the £12K in full as I have a contract agreeing to pay that sum and then to notify them that I had done so and that they will then refund me if there is any over payment. This seems awfully clumsy and will cost me more as paying the additional £2K will take me extra time.

I would have thought there would be a mechanism for them to see the total paid to date with the ability to agree that the amount is settled early, but clearly not. Has anyone else had similar experience?

[TheDogsNads]

Hi everyone
I was given 10 years to pay approx £10K, which had approx £2K in interest charges added £12K total. To try and reduce the interest I managed to repay the £10 tax owing by borrowing from elsewhere and contacted HMRC asking them to recalculate the amount owed as I had settled to tax owing.
I've just heard back from them say I need to repay the £12K in full as I have a contract agreeing to pay that sum and then to notify them that I had done so and that they will then refund me if there is any over payment. This seems awfully clumsy and will cost me more as paying the additional £2K will take me extra time.

I would have thought there would be a mechanism for them to see the total paid to date with the ability to agree that the amount is settled early, but clearly not. Has anyone else had similar experience?

Im surprised they gave you a 10 year TTP for just 12 grand. They've refused a number of people more than 1 year TTPs on far greater amounts.

Sadly, it's the HMRC way to put you through the mill when paying 'what you owe.'

[GregRickshaw]

Im surprised they gave you a 10 year TTP for just 12 grand. They've refused a number of people more than 1 year TTPs on far greater amounts.

Sadly, it's the HMRC way to put you through the mill when paying 'what you owe.'

It totally depends on who is dealing with your claim. I used tax lawyers and parliamentary help to get 120 months on 16k.

[panders]

It totally depends on who is dealing with your claim. I used tax lawyers and parliamentary help to get 120 months on 16k.

I did nothing special, and did it all myself. My settlement was agreed pre March 2019, perhaps then they were more lenient? I am earning significantly less now, so perhaps they took that into account too.

[TheDogsNads]

It totally depends on who is dealing with your claim. I used tax lawyers and parliamentary help to get 120 months on 16k.

No, what's changed is the Lords review of the Loan Charge fiasco.

Prior to this, in general you were fortunate to get a TTP for anything over 12 - 36 months. The group Im in struggled to get HMRC agreeing to more than 12 months. Thankfully it has changed for the better so some progress at least.