HMRC Tells People To Take Out Commercial Loans To Pay Tax

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.”

Hah!

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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Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

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HMRC's Deceit

Re the 2019LoanCharge, HMRC Chief tells MPs that it’s not retrospective as it doesn’t change the tax position of earlier years, but HMRC suggested way to avoid the stand alone penal charge, is to volunteer tax on the basis of adjusting the earlier years. This is a deceitful act.

— Gordon Berry (@wealthagent) August 23, 2018

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Ignorance of The Law Is a Reasonable Excuse

In Bradshaw v HMRC [2018] UKFTT 0368 (TC), the First-tier Tribunal (FTT) has held that a taxpayer's ignorance of the law is a reasonable excuse in relation to the late filing of a non-resident CGT return (NRCGT return).

As per RPC Mr Richard Bradshaw and his wife (the taxpayers), emigrated to Canada in 2004. The taxpayers were resident in Canada at the time they disposed of a UK property on 29 June 2015. 

On 20 October 2016, the taxpayers each delivered an NRCGT return to HMRC in electronic form.  The NRCGT returns claimed private residence relief until 20 July 2004 and showed no gain or loss.  As such, they declared no CGT liability. 

On 2 and 5 December 2016, HMRC wrote to the taxpayers issuing each with a notice of assessment for a late filing penalty.  The penalties were issued by HMRC on the basis that the NRCGT returns were not filed within 30 days of the disposal of the UK property, as required by section 12ZB, Taxes Management Act 1970. The 30 day time limit was introduced by paragraph 43, Schedule 7, Finance Act 2015, in relation to disposals made on or after 6 April 2015 (the New Law). 

The taxpayers appealed the late filing penalty assessments on 15 December 2016 and requested an internal review by HMRC.  The decision to issue the penalty assessments was upheld on review.

The taxpayers contended that their ignorance of the law was a reasonable excuse as HMRC had failed to publicise the introduction of the New Law and as soon as they became aware of the New Law they submitted NRCGT returns.  

The FTT held that ignorance of the law can be a reasonable excuse for the late filing of a NRCGT return.

This ruling means that the concept of "reasonable excuse" is wider than HMRC's suggestion of an "unforeseeable or inescapable" event. 

Another key point from the ruling is that taxpayers can rely on the advice of a third party, which has implications for those stuck in the IR35 and loan charge debacle. 

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

HMRC Wants Its Cake Both Ways

At recent HMRC webinar it was asked how HMRC can argue that loans are earnings for income tax but still argue for IHT. The misleading HMRC reply was that they are following the law,which of course is a lie as the very purpose of the webinar was to encourage voluntary settlement pic.twitter.com/sNqZl78T5m

— Gordon Berry (@wealthagent) August 10, 2018

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Avoid Suicidal Thoughts Out of Office Hours

Following calls from desperate contractors facing the loan charge tax demands, the Loan Charge Action Group (LCAG) wrote to Jon Thompson on the 13th June, calling on HMRC to set up a 24-hour helpline for those facing suicidal thoughts and severe anxiety as a result of receiving unpayable demands and threatening letters from HMRC.

Unsurprisignly, HMRC took over three weeks to respond to the letter and then the reply came not from Thompson, but from Julie Elsey, the person at HMRC responsible not for mental health, but for Counter Avoidance.

Business Matters reports that Elsey’s letter offered to assist to “help people put their tax affairs right”. However, the advice is only available between 8:30am and 4pm, Monday to Friday.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

HMRC Harasses Those With Mental Health Problems

HMRC has been criticised for failing to recognise mental health issues after it continued to target vulnerable taxpayers despite being issued with warnings from medical professionals.

The Telegraph states that is has been contacted by some of its readers who said their mental health had deteriorated because of the way they had been hounded for cash by HMRC.

In some cases this pursuit continued even after HMRC acknowledged that they were vulnerable. In one instance a high-profile figure attempted suicide after HMRC failed to correctly note his vulnerable person status and continued to contact him.

Others have been left unable to work after suffering anxiety and depression as a result of HMRC inquiries, while one reader asked solicitors to intervene on his behalf.  These cases highlight the lack of recognition and protection for those with mental health difficulties.

HMRC apologised for not meeting its own guidelines, losing letters and failing to return calls.

Andrew Neil, an IT contractor from Llandudno, sent multiple letters from doctors to HMRC, which ignored them.

HMRC acknowledged that Mr Neil was a vulnerable person in November 2016, but continued to send letters and contact him by telephone. The taxman also lost a letter sent by Mr Neil for almost four months and failed to call his wife back after she tried to intervene.

It has apologised for each of these oversights.

Mr Neil and others are among the thousands of people targeted by the taxman because of the way they structured their finances in the past, using loans instead of payments for their income.

These tax arrangements, which were generally considered legal at the time, have since been challenged by HMRC.

Those who have fallen foul now face large tax bills and penalties, sometimes in the hundreds of thousands of pounds. Because of the way HMRC is seeking to collect the tax, the “loan charge” payments due could be much higher than the amount originally owed.

HMRC told Telegraph Money it had safeguards in place to support those with mental health problems.That's all very well, but from the above it seems that HMRC does not follow its own rulebook on the subject of mental health!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance




HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"