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Where Taxpayers and Advisers Meet

HMRC demand

billtax
Posts: 13
Joined: Sat Nov 30, 2013 11:28 am

HMRC demand

Postby billtax » Wed Jan 22, 2014 6:15 am

Hi all

I was with the ill fated BMSt tax scheme and it was investigated by HMRC who found the scheme illegal.

I have been in constant contact with HMRC on this matter and their final demand will be £131K.

Does anyone know how long I have to pay this amount and if I haven't got all the required money, what do I do.

Will they come to some arrangement or just take my life away

Help

Bill

wamstax
Posts: 1864
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: HMRC demand

Postby wamstax » Wed Jan 22, 2014 10:24 am

Hi Bill,
If you have the capability to fund the settlement of the duties then I would start a dialogue with the HMRC officer before matters are finally agreed so that you can come to an agreement to pay the amount required by means of a settlement by instalments. This would normally entail making a substantial payment up front - what you have available to pay to the settlement - followed by monthly or quarterly instalments until the whole of the balance remaining is paid. Please note however that you will no doubt be involved in building into the instalments and amount of forward interest to take account of the additional time to pay. This would normally be the HMRC rate for late payment of outstanding duty (3%) plus an additional 1% (of the balance outstanding) for the risk involved in allowing you to pay it up. Remember if you depart from the terms of the contract they could call the whole amount in so you would need to ensure that the agreement is achievable over the period in which you are paying it up. Also don't forget that you will have to service your ongoing and current other tax liabilities
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

billtax
Posts: 13
Joined: Sat Nov 30, 2013 11:28 am

Re: HMRC demand

Postby billtax » Wed Jan 22, 2014 5:05 pm

Hi
Thanks for the reply.

I have had dialogue with HMRC on this subject and I am waiting for the final bill to come through.

Of course i am worried about my house and cars but I have at lease half of the money.

I am not sure how much they will make me pay in settlements and they have talked of invetigating my bank account and whether I can borrow off my family

I feel like just closing my savings account and taking all the money out and saying I owed it to someone

Regards

Bill

Incredulum
Posts: 2723
Joined: Thu Dec 03, 2009 5:35 pm

Re: HMRC demand

Postby Incredulum » Wed Jan 22, 2014 6:33 pm

I feel like just closing my savings account and taking all the money out and saying I owed it to someone
Fraud is likely to get you into prison.

wamstax
Posts: 1864
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: HMRC demand

Postby wamstax » Wed Jan 22, 2014 8:23 pm

It will be a question for agreement with HMRC as to how much they look for to be paid as a down payment (the initial payment) and what the balance will be and over what period you can afford to pay the instalments.

Clearly if you try to bend the truth HMRC's attitude would harden and you would be the only one to suffer and as Inc says could get you another four walls around you for a period and a nice warder to tuck you in after the curfew.

Frankly if you try your proposal you would clearly be put under the cosh and HMRC would be looking for a lot of evidence as to how and when you owed such money - and probably would be even more dubious if this was the first time that you have ever mentioned the loan from somebody. Equally if you have squandered their money on living and cars then expect them to be pretty intrusive into your current assets and future income/receipts with the necessary requirements for servicing your self going forward. Of course if you have purchased assets or gifted their money to family then they would look for you realising such assets/loans or taking out loans to fund the settlement. Remember when you are budgeting for the future that you are realistic both as to your incomings and outgoings and your expectations for living standards as beign foolish or unrealistic will just make them start to think of formal proceedings to recover their money - which could in the "worst?" scenario be your bankruptcy. AND the one final point do not lie or provide false information.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

billtax
Posts: 13
Joined: Sat Nov 30, 2013 11:28 am

Re: HMRC demand

Postby billtax » Thu Jan 23, 2014 5:12 am

Hi

Thanks for the reply again

Has anyone out there been suffering as part of the BMST problem

I am though aware that I was just "sounding off" about removing all the money as this would be taken as fraud by HMRC.

I feel though that I have no where to to turn but someone has relied with a link to firms of Tax accountants who could they say reduce the amount I will pay by negotiating on my behalf, I think this is very unlikely.

Any advice

Bill

wamstax
Posts: 1864
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: HMRC demand

Postby wamstax » Thu Jan 23, 2014 8:54 am

Yes I think that you may have your finger on the pulse and of course if someone is so confident that they are going to save you MORE money than they are going to charge you as a fee then presumably they would be confident enough to work on a sole commission fee based totally on the actual saving they make - not their unquantified assertion about saving you money.

Do not misunderstand me it is quite possible where HMRC are going to charge you a penalty and/or there are ways that the actual basic tax bill (that is the actual correct tax charge being levied) that is going to form the basis for any interest and penalty charge is going to be legally minimised below the HMRC claim then the benefits of engaging an appropriate and experienced TAX specialist. Anyone that approaches you with the carrot of being able to save you "loadsa" money or asking for fees in advance without explaining to you where and what savings will be made should be viewed with appropriate caution UNLESS they are prepared to put their money where their mouth is.

Much as it pains me to say it when "greed" has overcome sensibility and you have initially been persuaded to believe you can get all your money with only 1% (my exaggeration) of a tax deduction do not be screwed by another professional who cannot put their money where their mouth is.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

wamstax
Posts: 1864
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: HMRC demand

Postby wamstax » Thu Jan 23, 2014 8:55 am

Yes I think that you may have your finger on the pulse and of course if someone is so confident that they are going to save you MORE money than they are going to charge you as a fee then presumably they would be confident enough to work on a sole commission fee based totally on the actual saving they make - not their unquantified assertion about saving you money.

Do not misunderstand me it is quite possible where HMRC are going to charge you a penalty and/or there are ways that the actual basic tax bill (that is the actual correct tax charge being levied) that is going to form the basis for any interest and penalty charge is going to be legally minimised below the HMRC claim then the benefits of engaging an appropriate and experienced TAX specialist. Anyone that approaches you with the carrot of being able to save you "loadsa" money or asking for fees in advance without explaining to you where and what savings will be made should be viewed with appropriate caution UNLESS they are prepared to put their money where their mouth is.

Much as it pains me to say it when "greed" has overcome sensibility and you have initially been persuaded to believe you can get all your money with only 1% (my exaggeration) of a tax deduction do not be screwed by another professional who cannot put their money where their mouth is.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website


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