SA - Payment on Account Query

clarebear

Last year my business had a net profit of just under £4,000 so obviously have tax to pay. However, this year, the business has taken a significant downturn, but HMRC are requesting nearly £500 on account. My turnover has halved from £9k to £4k in comparable year to year terms. Is there a way I can request to pay a smaller amount on account?

Mikeyorks

Do you have other income .... as your Personal Allowance would cover a profit of £4k otherwise?

Yes - you can request to reduce the POAs by completing SA303. You can probably do it online - or over the 'phone if you can get through. But do watch you don't overdo the reduction (if you have other income) .... as they will charge interest (much reduced - in line with Base rate) back to the original due date if you reduce to below the final liability.

clarebear

Yes I am employed also. I will look for that form online. Thanks for the advice

Mikeyorks

I've just noticed on the HMRC site (Home page - under 'Issues') that SA303s actually completed online are a continuing problem (OK if the application to reduce is part of the Return filing) from mid-Jan. And the advise is to ring your home office or complete one, on paper, and send it in.

.pdf to enable you to print one is here :

http://www.hmrc.gov.uk/sa/forms/sa303.pdf