Qaulifying Time Deposit

Mikeyorks

Sorry - perhaps I should have qualified that 'high net worth individuals' tends to be the modern term for the very wealthy (and, accordingly, unlikely to stroll into your average High St Branch . But - a few are to be found at the bottom of The Strand - in Coutts)

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_ShowContent&propertyType=document&columns=1&id=HMCE_PROD1_028982

John_Pierpoint

I was agreeing with you.
You don't need to be a "HNWI" to have a 50K nest egg and I'm sure the sales driven structures in banks these days, will see the opportunity for putting such people into relatively stable "QTD's", in times of economic stress.

Mikeyorks

I wasn't 'disagreeing' with you!

But £50k on deposit in the early '80's was very significant? Just making the point (as Treasury / HMRC are reluctant) .... that anyone with an income just over £30k in those days paid tax at 60%. So the £50k limit on a QTD is now slightly outdated

Manage_my_tax

QTDs crop up quite often in my case hence 'manage my tax'
I have distributed the cash as recommended by Martin to get the FSCS 50k cover, albeit this will rise to some 84k subject to a decission this month.(just a foot note I will not and never will invest in any thing other than secure cash and will accept the roth of inflation, it's the ony thing the financial advisers continue to bang on about as they are all trying to get my cash so that they can earn money at my expense.
I tend to favour Mikeyorks opinion on why QTD over 50k are gross and not John_'s tampon expaination even though his advice and links were spot on in the previous mails, it just goes to show what money and tax can do to ones mind. If the real value of 50k is now 250k from the introduction of QTD (even though the HMRC reviewed this in March of 2009) then the FSCS will have to raise their game accordinly otherwise I will stick to the FSA supported level in a mis match of differing financial institutions..

it is realy disapointing that the plebs employed at HMRC have not even an understanding of my question let along an explaintion.

John_Pierpoint

Some of you will know that my tussle with what I now know to be a QTD, is because I have been appointed executor for Mr Dog my late uncle. He invested his nest egg into one of these "bonds", when National Savings Pensioner Bonds were withdrawn.

I have managed to persuade yet another tax office, that I do indeed owe some tax on the interest that the QTD (Bond) has generated during the period of administration and I have received a letter:

"I enclose form P254 in order for you to submit a voluntary payment as detailed above.............................."

P254 is a simple form of which the bottom third is a "Payslip"
The payslip has the following guidance:
INPUT CODE 171
Use black ink and capital letters (this will be machine processed?!).
HMRC to complete payslip and overleaf (back of payslip) for all payments in DECEASED and ESTATE cases

But here we have the problem, the wretched form has been left completely blank. My choice:
- Send the form back; but this would likely delay final settlement by another 3 months ?
- Do my best to correct the deficiency and stuff a 4 figure sum into a black hole?
- Phone the 0845 number?

In a triumph of hope over experience I telephoned and bounced about in a forest of "Press button 2" "Press option one" but eventually I got a human voice:

"Just do your best..............we will correct"

So now I am doubly uncertain and confused.

Office Number:I know this it is the first 3 digits in the Our Ref. of the covering letter; geographically it is Mr Dog's tax office not the tax offices that have been writing to me.:(
http://search2.hmrc.gov.uk/kbroker/hmrc/locator/search.ladv?tx6=1&tx5=2674&sp_pc=&type=3&op2=1&op3=1&op5=1&tx3=961&op6=0&sp_loc=&sm=0&submit=Search&sr=0&as=1&sf=&fl5=regime%3A&ty5=0&ty6=0&fl3=officenumber%3A&ha=140&fl2=officenumber%3A&cs=UTF-8&ty2=0&fl6=sp_nearest%3A&ty3=0&nh=10&sp_scope=hmrctaxo
Year ended 5 April: I know the answer it is 10:j
For office use only:
Reference/NINO: I know Mr Dog's NINO but the letter has a reference too, no room for both, so I think the NINO (Nat. Insurance Number) would be safer?
Name - title - initials - Surname could that be Mr Dog or is it me?
Address including town and post code: Is that me or Mr Dog - I don't want them trying to write to his nursing home or even his former bricks and mortar home [HMRC has pulled that trick once already]?
Tax paid: Yes. 9999.99
PTO.
For official use only
Where appropriate, enter below the name of the tax payer, if not as overleaf. For example deceased cases
Name-title-initials-Surname: could that be Mr Dog or is it me?

Can anyone comment on how to fill in this payslip?

Mikeyorks

John_Pierpoint wrote: »

Can anyone comment on how to fill in this payslip?

It's called a Voluntary Direct Payment (VDP) ......... and they weave a tortuous path through HMRC processes at the best of times. Which is why (re P800 underpayments) I've cautioned a couple of people against 'voluntarily' paying ..... and to wait until after 31/12 when the underpayments are assessed.

It's clearly not a secret to you that HMRC should have completed the payslip! The detail required is here :-

http://www.hmrc.gov.uk/manuals/tsemmanual/TSEM7425.htm

The reference is critical as it's translated onto a manual form to link back into the originating 'district'. A flavour of the route here:-

http://www.hmrc.gov.uk/manuals/pommanual/paye90026.htm

I wouldn't touch it with the proverbial? The NINO might cause it to surface correctly - but I doubt it. Regret you need them to issue a properly completed payslip ........... in accordance with their own guidance! If nothing it proves the old adage 'When things are going badly ............... they usually get worse!'?

John_Pierpoint

QTD RIP.

http://citywire.co.uk/new-model-adviser/budget-2011-time-deposit-accounts-lose-tax-loophole/a481222

Just for the record, I filled in the form for HMRC (and got the addresses back to front) but it did get processed correctly.