The Telegraph reports that people with outstanding debts to the taxman have been told to take out personal loans to pay the money owed.
Seemingly HMRC has written to those affected saying they should make every effort to pay, including selling assets or taking out a commercial loan.
The average rate on a £10,000 personal loan is currently 4.6pc, according to data service Moneyfacts, while the tax office typically charges just 3.25pc.
Ironically this comes as the Government is consulting on a new “Breathing Space” programme, which aims to help those with problem debts by giving them additional statutory protections from predatory collectors.
However, be not afraid, for you see HMRC deny that they are doing this:
“We never tell people how to pay their tax debt – it makes sense for all options to be considered, including taking out a commercial loan, to work out what is best for them. The first step in this process is to contact HMRC so we can discuss the help that we can offer.
We are working hard to help thousands of people out of avoidance for good and as part of this we aim to offer manageable and sustainable payment plans whenever we possibly can.”
Methinks HMRC is playing with words again.
Wrt the second paragraph, I apologise for being thick, but that the hell does "We are working hard to help thousands of people out of avoidance for good" mean?
Is HMRC saying that legal tax avoidance causes debt?
Or is it saying that whatever tax avoidance practises that are currently being utilised by people, at some stage in the future HMRC will charge retrospective tax on them?
Tax does have to be taxing.
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