"Small businesses will get more time to pay tax" How?

Seaxwyn

I'm a sole trader with a whopping tax bill due on 31 January. In the Pre-Budget Report, the Chancellor said something about giving small businesses more time to pay tax. Does anyone know what this means? And whether it applies to sole traders?

I was thinking of asking if I could pay my Payments on Account in twelve monthly instalments rather than half in January and half in July. Does anyone know whether there is any chance of them agreeing to this?

If anyone has any advice on how to spread the cost of tax bills, I would be very grateful.

sodamnfunky

I wouldnt bet on any help. This government hates the self employed. I have tax to pay in January and have it saved, however they can go swivel for the payment up front in one lump sum.
I am calling them in the new year, to ask what economic rescue package they have for the self employed.

Caroline73_2

I save 20% of my profit each month, and then I have the money aside ready.

Bean_Counter

Seaxwyn wrote: »

In the Pre-Budget Report, the Chancellor said something about giving small businesses more time to pay tax. Does anyone know what this means?

This link to HMRC should hopefully provide some more information for you.

Seaxwyn

Thanks Bean Counter - just the information I need.

Seaxwyn

OK I phoned the number - http://www.hmrc.gov.uk/pbr2008/business-payment.htm - and they were incredibly helpful!

The lady immediately asked me how I wanted to pay, and agreed to my proposal. I'm paying in eight instalments rather than two, which is much more doable.

To anyone who is worried about their January tax bill, I would say work out how you can afford to pay and give them a ring

shabbychicfan

Would this apply to Ltd companies too do you know? I have to pay my Ltd Co tax bill by end of Jan, but with things the way they are cashflow is extremely tight!

Seaxwyn

Yes I am sure it would - I think it's set up more for companies than for sole traders really - ring the number on the page I linked to above.

shabbychicfan

Thanks Sea - that would be a worry off my mind for a few months!

Shabby x

stphnstevey

Do they charge you interest if you pay over a longer period?

Here it says:
We will not charge additional late payment surcharges on payments included in the arrangement, although interest will continue to be payable on those taxes where it applies.

Is that just if you have gone over the deadline or something and not made a prior arrangement?

How do you show your struggling? Obviouly for any business it woulf be better if you could pay your tax over a longer period, just wondered how they differentiate?

Seaxwyn

They charge interest at 5.5% on some of it - I'm not sure yet as I haven't had the letter.

I didn't have to do anything at all to demonstrate I was struggling. I just said I wanted more time and they said, Fine!