Monday, November 06, 2017

MVLs and statutory interest – a call for evidence

R3 are continuing to have dialogue with HMRC about statutory interest on MVLs.  Realistically though, unless an IP or the members on an affected case challenge HMRC in Court, you will have to pay statutory interest on all pre-appointment tax liabilities paid following appointment, even if the tax is not due until a later date.  Now that you know about that, however, that is something that you can plan for.  R3 are focussing on cases that were already open when HMRC started demanding statutory interest earlier this year, such that IPs could not plan ahead in order to avoid it, and also closed cases, trying to persuade HMRC not to charge interest in such cases.  To do that, R3 are trying to show that HMRC had previously rejected payments of statutory interest such that they are “estopped” as a result of their previous actions from then seeking such payments without first having put IPs on notice of their "change in policy".  That approach requires evidence, so if you had any examples of historic, or indeed current, cases where your tried to pay statutory interest to HMRC but they rejected it, then Caroline Sumner at R3 would be interested to hear from you.  Ideally those examples should be supported by correspondence with HMRC regarding the payment and its rejection.  If you have any such examples then we would be happy to forward them to R3 on your behalf if you did not want to send them direct