Please help me. Income tax emergency

chriiiiiiiis

There's some info on 'payments on account' here:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/SelfAssessmentYourTaxReturn/DG_10014904

hopefulfooluk

This might help too - give them a call before it becomes due (ie in the next week) and see if they can give you the option of instalments:

http://www.hmrc.gov.uk/pbr2008/business-payment.htm

christopherjk

Thanks for the helpful advice and links.

I just wondered why they want a portion of 2008/2009 in advance!?

My friend is in a similar position to me and was told he doesn't have to pay in advance for 2008/2009, but he still owes over £500 with Income tax and nic class 4s - they have told him he can now pay half now and half in July.

So I shall give them another call today, badger them and let you all know what happens!

Thanks again for the advice!!!

Tiggergirl

They ask for some of 2008/9 on account because presumably you are already earning that money.

Imagine you are not self employed. You would be having tax and NI deducted as you go along (pay as you earn). If you think about it, you are not really paying the 2008/9 bit in advance since the financial year is over 3/4 of the way through. You have probably already earned all the money that the payment on account relates to.

toby_puppy

Tiggergirl wrote: »

They ask for some of 2008/9 on account because presumably you are already earning that money.

Imagine you are not self employed. You would be having tax and NI deducted as you go along (pay as you earn). If you think about it, you are not really paying the 2008/9 bit in advance since the financial year is over 3/4 of the way through. You have probably already earned all the money that the payment on account relates to.

Thank you - I work in an accountants and have spent most of the day explaining exactly that to many disgruntled clients who seem to think they are paying tax in advance when they get their payslip.