HMRC APN Hell

abdog

Over 20 years ago I entered into a personal tax scheme which was completely legal, and enabled me to save some money on tax as a relatively high earner. The law was changed years after I entered the scheme, and backdated by 10 years, meaning that the scheme I had legally joined became illegal and I owed £21,000 in tax overnight.

I have avoided this debt for 17 years as I was offered legal advice which basically said that the HMRC did not actually have the right to claim these debts and effectively I did not have to pay.

The HMRC have been sending me letters for 17 years requesting that I pay my debts under an "Advanced Penalty Notice" (effectively, they are being taken to court for this action, and pending their winning the case they would like debtors to pay IN ADVANCE).

I have finally had enough and would like to just get them off my back. They have stated that the interest and "penalties" from me not paying the initial £21,000 have brought my debt up to £55,000. I don't have this money available. I don't own my own home, or even my own car. I was trying to save loads into my pension to protect myself in later life, as my pension is not huge either.

Could anyone advise as to whether you can argue the interest and penalty fees, and for what criteria the HMRC allow discretionary reductions on these charges? I can scrape together the funds for the initial £21k but not for all the extra charges they have added on, and I do not want to go bankrupt as a result of following sound legal advice.

Do the HMRC ever come down on penalty fees, and what do you have to demonstrate to negotiate effectively with them?

Do the HMRC ever waive interest on debts owed (particularly under APN)? And under what circumstances? So far they haven't even told me I owe interest formally but I have heard they usually apply interest to any monies owed?

Any help greatly appreciated!

Thank you!!!

HMRCVictim

Hi,

I have no direct experience of APN’s, so I cannot answer any of your questions directly. But, can I suggest that you consider joining the Loan Charge Action Group. LCAG has >2,500 members and many do have experience with APNs. There is a private forum where you can discuss issues like this.

I do however think you need professional tax advice, LCAG does not offer this. I would personally recommend, not as “official” LCAG endorsements, either WTT Consulting, Phil Manley (DSW) or Andy Wood (Etc., formerly Enterprise Tax). If you cannot afford to pay for advice, then consider talking to LITRG.

I wish you the best of luck. Please reach out to me privately if you wish.

abdog

Thank you so much. This is actually a close friend's situation not mine, but I have posted to protect their identity as this is a very difficult time & situation for them. They are so depressed by this situation that last week they mentioned that "jumping off a bridge" is the only way out. I am trying to help them see that this is not the case.

Your suggestions are greatly appreciated and I will investigate today - thank you!!! Have a lovely day.

A

HMRCVictim

Hi. Sorry, I never saw your reply.

Is your friend ok? If they are talking about ending it all then they need to seek professional medical help urgently.

If they need someone to talk to, then they can call Samaritans. Or if they want to speak to a volunteer (not a tax expert) who has direct experience with this type of situation, then please ask them to text “LCAG HELP” to 81025. Someone will then phone back.