Basic PAYE Tools

[Wywth]

Originally Posted by Savvy_Sue

...I'm not sure whether the option of quarterly payments will continue, but I do know that the amount due will now have to tally with the amount paid. (I'm sure this is A Good Thing, but I confess I did once deliberately underpay HMRC for a quarter when my staff wages bill was massive, and I knew I'd have the funds to cover the shortfall before the next quarterly payment was due. This is not something I'd ever recommend and it now won't be possible. Except that the whole thing is likely to be a complete fiasco because the systems won't work as they should.)

If you are unfortunate enough to find yourself in a similar situation in future, there is a way out (especially if it is not at year end, else interest will accrue) if you act in a timely manner (i.e. before the amount is actually due)

If you can't make a payment reported on an FPS


If you can't pay what you've reported to HMRC via an FPS, you should contact the Business Payment Support Service as soon as you can to set up an arrangement to pay. The reason for this is that you can avoid penalties for a particular period or periods if, before the due date, you apply for an arrangement to pay and keep to the terms of the arrangement. But you will still have to pay interest on any amounts paid after the year's end.

http://www.hmrc.gov.uk/payerti/paying/cannot-pay.htm#1

[AbbieCadabra]

a few years ago we needed to spread a payment over a couple of months so i contacted the payment support service, this wasn't long after it had been set up. we were up to date with all other payments & deferred payment was agreed straight away with very few questions.

had to contact them again about 18 months later, again to pay a particular amount over 2 months as we couldn't manage in one go. completely different response from the support service, they wanted all the current figures from the business, had we drawn dividends, what else did we owe/was owed to us, had we tried to get a bank loan etc etc., the in-depth questions seem to be non-ending! they did agree, but they sure made me work for it.

i can understand why all the questions as the service shouldn't be used as an easy answer or to prop up a failing/failed business. just be aware it's not as straight forward as just calling them & asking for a payment plan

[Savvy_Sue]

Originally Posted by Wywth

If you are unfortunate enough to find yourself in a similar situation in future, there is a way out (especially if it is not at year end, else interest will accrue) if you act in a timely manner (i.e. before the amount is actually due)
http://www.hmrc.gov.uk/payerti/paying/cannot-pay.htm#1

Fortunately, I'm no longer in this situation. I was running an out of school club, in term time the amounts due to HMRC were very small, and by the time I realised that the summer holidays were going to lead to a BIG HMRC bill there was nothing I could do to improve the cashflow in time.

However, I knew the next instalment of our startup grant would be in the bank in time to sort the problem. The chap I had an 'in principle' conversation with at HMRC didn't suggest a payment plan, he just confirmed my suspicion that they'd never know (especially as this was our first year of trading, so no pattern established). He did say that not paying HMRC was a Very Bad Idea, and that he couldn't possibly recommend the course of action I was proposing!

So, although I think it's likely to be a bit of a nightmare in its implementation, in principle I can see that submitting details of the actual amounts due WHEN they are due is a good idea. I imagine that some small businesses think they'll be able to find the money at year end, with the triumph of hope over experience!