Will I have to pay tax all in one go?

PT66

I was self employed in 2006/2007 but have still not filed my tax return. I have calculated that my tax bill will be circa £900 + the £100 fines for late payment. Once submitted will I have to pay in a lump sum or can I make monthly contributions. I am on PAYE now so could they adjust my current code?

briona

PT66 wrote: »

I was self employed in 2006/2007 but have still not filed my tax return. I have calculated that my tax bill will be circa £900 + the £100 fines for late payment. Once submitted will I have to pay in a lump sum or can I make monthly contributions. I am on PAYE now so could they adjust my current code?

I THINK (though someone who actually KNOWS may correct me!) that if the tax you owe is less than £2,000, they will adjust your tax code and collect it through that, but if it's more than £2,000 you will be sent a bill.

HMRC seems to be open to having you pay the bill in installments. The link below has some info about arranging payment plans...

http://www.hmrc.gov.uk/sa/not-pay-tax-bill.htm

sandiep

Yes, they can collect it through to tax code.

But also, the Inland Revenue are currently very open to an arrangement to pay, basically if you contact them and tell them what you can afford to pay and when then they'll draw that up in an arrangement to pay, and as long as you stick to that then they'll be happy.

chriiiiiiiis

You'll not be able to pay 2006-07's liability through 2009-10's PAYE code. It's too late now.

If you file 2007-08's return online asap, and the amount you owe is less than £2000 it'll be collected through 2009-10's code if you opt for this under the 'if you've not paid enough tax' section on the online return.

PT66

Cheers for the advice jimmo.

I was a bit guilty of sticking my head in the sand hence have not got around to doing it. I was brokering yachts so everything shows up on my client account - buyers money in then a transaction out less my commission. I have received 2 penalty notices showing the £100 late fee but nothing other than that. The 06/07 liability is about £800 and I stopped trading summer 07 so the liability is less than £100. I have got all my receipts etc - I was a sole trader not limited or vat registered. Had not considered getting a proffessional in as I cannot really afford it. I will do the 07/08 on line before 31 Jan 09 and that should be OK - I believe there is a section on the return where you can include underpaid tax and I was going to show the 06/07 in there?

chriiiiiiiis

PT66 wrote: »

I will do the 07/08 on line before 31 Jan 09 and that should be OK - I believe there is a section on the return where you can include underpaid tax and I was going to show the 06/07 in there?

The 2006-07 return has to be filed seperately.

PT66

All done & Submitted