MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
I'm going to be about 2-3k short for my july 31st tax bill, but due to some big jobs coming up i should have the shortfall by October. I've submitted my 16/17 accounts and got the calculations for tax due July 17 / Jan 18.
What do HRC charge for late payments? I can pay some of it end July, bit more end August and September and should be cleared in October.
Or is the best option just getting a personal loan of some sort?
(not got accountant at moment or i'd be asking him!, dont use one as my tax returns are v simple so do them myself)
Thanks
Your return might be simple, but how do you know your accounts are correct? Are you including ALL the expenses?
Get yourself an accountant!
Your return might be simple, but how do you know your accounts are correct? Get yourself an accountant!
He may well still end up 2-3k short plus have an accountant to pay as well...
Talk to them. IME from running my own business a few years ago they are open to payment deals provided you stick to them.
No point saying I'll make a payment on 'X'date then missing it. Agree what you can afford, not what you hope to.
Get onto the phone to them NOW, My experience is that they will help you out but you must talk to them as soon as possible (dont expect fantastic terms but they will be flexible).
Shred the evidence and get an account opened in Switzerland for the remaining millions
They will fine you. I copped £250 for something the adviser said I more or less couldn't have known I was liable for, but he made it quite clear I was going to have to pay something, and paying that was considerably better than the alternative. I did the right thing, was straight with them and accepted responsibility .. but they don't have leeway to let you off.
If you get a loan, they will front the interest, so even if you can pay it off a day later you'll still pay that. Could be a few hundred.
0% CC deal might be the best option - you'll pay 3% on the transaction to HMRC (I think), maybe that's as cheap as it'll get.
thanks for the replies,i'll give HMRC a call see what they say, and look at credit card deals as well.
Penalties for late payment
5% of tax unpaid after 30 days
Another 5% of tax unpaid after 6 months
Another 5% of tax unpaid after 12 months
Is your business doing as well in the current year as the previous one as you are being assessed that you will have similar tax to pay. Other wise you would need to reduce you payments on account to prevent an overpayment.
As Esme said are your accounts correct. Many times a new client who says they know what they are doing doesn't and the first thing we do is revisit their prior year and correct it to usually get a refund from missing out various expenses and allowances. Yes, we charge for it but we don't benefit as much as out clients do.
Talk to them. IME from running my own business a few years ago they are open to payment deals provided you stick to them.
^This.
Despite HMRC being a total shambles, with less mathematical skill than a troupe of howler monkeys and as much common sense as a pheasant crossing a road, they do tend to sit up and take not when them getting money back in / payment terms need to be sorted, in a limited 'I cannot stray from my script' way.
Give them a call. I had to give them £3500 after my tax return in Jan. I had the money, but i wanted to keep some money in the bank as a buffer as the wife was due to give birth in the following few weeks so i was going to be taking some time off etc.
I paid £1500 then split the remaining 2k over 4 months. They charged me a massive £8 interest for paying it over instalments.
Speak to an accountant first then HMRC. They will work with you if you have genuine difficulties.
Or bang it on a credit card. As long as you are sensible and pay it back it's pretty cheap short term borrowing. Between HMRC sending you the bill, and depending on when in the month it falls and when you get your CC bill you might find you don't even have to pay a good chunk of the interest.