can i reduce this figure to zero???

shamac

Am just paying hubbies tax bill-want it out of the way before the new year. I know the taxman adds on an amount to cover half of next years income tax and that you can apply to reduce this if you think you won't be paying as much tax. My hubbies company hasn't traded since dec 07 although it still exists (he is sometimes self-employed but currently contracted and paying PAYE and will do so for the next few years). So he won't owe any extra tax after this bill. I have reduced the amount to zero-paid what we owe to date and written on why. Will they accept this do you think??

System

They should accept it though payments generally go to a separate section to be worked and it might be better to complete the SA303 - http://www.hmrc.gov.uk/sa/forms/sa303.pdf and send it directly to your husbands tax office.

You need to be very sure that his tax bill for 08/09 will be zero as interest will be charged if you reduce the payments on account (POA) and he does end up owing tax.

Pennywise

Just putting a note on the demand won't work. Demands go to the Collector of taxes who simply collect what they're told by the tax inspectors - they're just the debt collectors. You need to write to the actual local tax inspector or send form sa303 to your local tax office- they'll then deal with it and reduce the amount due on the computer system, so the tax collectors won't keep asking for it.

shamac

Thanks for the replies. Don't think he will owe anything as he has paid PAYE since Dec 07?

ks62uk

If your hubbie has stopped self employment then call the National Insurance Self-Employed Helpline on 0845 915 4655 and tell them so. He will not be required to pay class 2 NIC if he has ceased self employment.

As the business has ceased that should have been shown on his tax return as it is one of the self employment questions and would have affected the basis period and capital allowance calculation (if any assets were owned by the business). Adding the note to the "any other information" box would also have alerted them to the fact that the business has ceased.

He can apply to reduce the payment on account online which would be quicker than writing to his tax office as mail is often left several months before it is dealt with at busy times of the year such as Jan to April.

By "company" I presume you mean his self employment business rather than a limited company of which he is owner-director.

Tarasam

Hi,

You can do this by ringing his tax office and asking them to reduce the payments on account, they will do it immediately and issue paperwork to confirm. Your husband will need to do this though.