A bit of a situation.
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Aegean
Posts: 91 Forumite
in Cutting tax
I've been freelancing for a few years now, but only in the past year have I had a "normal" job and pushed the freelancing to the side.
Last year's tax return was fine, however this year it's an almighty mess and I've ended up owing a fair amount of money to the tax man.
Long story short, it appears that in my "real" job I've failed to notice that I wasn't paying any student loan off in my salary deductions, the tax man has jumped on me to pay the year's worth through my self-assessment (on top of the Class 4 NICs and tax I owe.)
Needless to say I'm up a creek - has anybody had any experience with managing to be able to work out an installments system with HMRC?
Their helpful advice so far has stretched to "ask your bank for a loan", "cut back your spending" and "ask people for money if they owe it to you". Unfortunately I haven't ever been well off enough to lend £1000 to anyone so that rules the latter suggestion out.
Last year's tax return was fine, however this year it's an almighty mess and I've ended up owing a fair amount of money to the tax man.
Long story short, it appears that in my "real" job I've failed to notice that I wasn't paying any student loan off in my salary deductions, the tax man has jumped on me to pay the year's worth through my self-assessment (on top of the Class 4 NICs and tax I owe.)
Needless to say I'm up a creek - has anybody had any experience with managing to be able to work out an installments system with HMRC?
Their helpful advice so far has stretched to "ask your bank for a loan", "cut back your spending" and "ask people for money if they owe it to you". Unfortunately I haven't ever been well off enough to lend £1000 to anyone so that rules the latter suggestion out.
Goal: Debt-free by 01.12.16
LET'S DO THIS!
PAYDBX 2016 #120 £5,141.65 [STRIKE]£5,747.37 on 01.01.16[/STRIKE]
£1 a Day #88 £80/£365
Earnings from Quidco, surveys and found shrapnel: £21.36
LET'S DO THIS!
PAYDBX 2016 #120 £5,141.65 [STRIKE]£5,747.37 on 01.01.16[/STRIKE]
£1 a Day #88 £80/£365
Earnings from Quidco, surveys and found shrapnel: £21.36
0
Comments
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In my experience, jump through all of their hoops (as you say let them know you've budgeted, sought other sources of finance etc) then come up with a payment plan. Make sure it's reasonable, so offer say 50% on the due date and then five 10% installments for the following five months.
They aren't particularly forgiving and will charge you interest but you should avoid any penalties in this case.0 -
They aren't particularly forgiving and will charge you interest but you should avoid any penalties in this case.
Oh believe me, I know that much! :rotfl:
Thanks, I'm making sure I have my budget 100% accurate so they can't trip me up and am calling them tonight. Wish me luck!
Goal: Debt-free by 01.12.16
LET'S DO THIS!
PAYDBX 2016 #120 £5,141.65 [STRIKE]£5,747.37 on 01.01.16[/STRIKE]
£1 a Day #88 £80/£365
Earnings from Quidco, surveys and found shrapnel: £21.360 -
UPDATE: I called and gave them my full budget breakdown, they said my payments should be accepted but I need to call back in Jan so they can actually process it as I'm *too early*!
I could pass out, nobody's ever said that to me before...Goal: Debt-free by 01.12.16
LET'S DO THIS!
PAYDBX 2016 #120 £5,141.65 [STRIKE]£5,747.37 on 01.01.16[/STRIKE]
£1 a Day #88 £80/£365
Earnings from Quidco, surveys and found shrapnel: £21.360
This discussion has been closed.
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