Problems paying your tax on time

You would be hard pushed to find a tax payer who was happy to pay tax. Whatever the economic benefits of taxation, we would all prefer that someone other than ourselves paid the bill.

Companies are obliged to disclose their corporation tax liabilities in the year in which they are charged. Profits are stated net of tax due and any retained profits are available for the shareholders to draw as dividends.

Sole traders and partnerships do not have to disclose current year’s taxation in current year’s accounts. Therefore, conversations about profitability and income tax can be separated.

Hopefully, readers who are self-employed will have settled any income tax due 31 January 2018. If not, HMRC’s debt collectors will no doubt be calling in their dues. There is also the second payment on account for 2017-18 which is due 31 July 2018.

If you have difficulty paying your tax? What is the best strategy?

Without a doubt, it is not burying your head in the sand. HMRC are quite clear in their advice:

Contact HMRC as soon as possible. You will have to pay interest if you pay tax late and you may avoid penalties by contacting HMRC.

If you can’t pay before the deadline, call the Business Payment Support Service. Anyone can use this service, not just businesses.

 

Business Payment Support Service
Telephone: 0300 200 3835
Monday to Friday, 8am to 8pm
Saturday and Sunday, 8am to 4pm
Nominated partners in business partnerships can negotiate time to pay with HMRC on behalf of the partnership or individual partners.

So, if you’ve missed your payment date, or if you’ve received a payment demand, like a tax bill or a letter threatening you with legal action, call the HMRC office that sent you the letter.

Call the Business Payment Support Service if you haven’t received a bill or letter about payment yet.

You will need to convince the person you speak with at HMRC that you have genuine reasons for late payment, so it pays to get your ducks in a row before you call.

Share:

Accounting in Sheffield and Doncaster Certificates

Recently Added News

More corporate red tape

We are still waiting for the government to introduce secondary legislation that will oblige directors and others with significant control – so-called PSCs – to

Read More »

New employment protections

The following changes were enacted from 6 April 2024. These changes apply to England, Wales and Scotland. Northern Ireland is not included as employment law

Read More »

Related News

Check your National Insurance record

There is an online service available on HMRC to check your National Insurance Contributions (NIC) record online. The service is available at https://www.gov.uk/check-national-insurance-record In order

HMRC helpline changes on hold

HMRC has been forced into an embarrassing climbdown on plans to close the Self-Assessment, VAT and PAYE helplines from early April until September this year.

Journey out of debt

Hopefully, this post will be of help to individuals that find themselves in debt and are struggling to keep up with repayments. It’s interesting to

Quick Links

Web + SEO - LoudCrowd