Tax overdue - Help!

jimpix12

Hi all, I an self employed and pay my income tax online. I have today received a notice that there is still £2011 outstanding on my tax bill (07/08) and that the HMRC are levying a penalty charge on this.

I can pay this now on my credit card, if necessary, and then pay that off at the end of May. I was planning to wait because I thought I had until July 31st to pay it anyway, which is when they levy the next payment on the account. I don't want to keep getting charged 5% penalties - how long do I get to pay this or should I just pay it now via Credit Card?

Sterile

Is that for the 31st January payment on account of this year ? ie two and a half months overdue ?

If it is I would just pay what you can now and not go down the route of credit card.

I was 3-4 months late paying once and they didnt bat an eyelid.

It might be worth phoning them to explain, they should be fairly accommodating. They will expect you to pay your next payment bang on time or before though.

sarflee

The payment appears to have been due 31 January so I'm not sure what you mean by how long do I have to pay. If you are having problems ring them and they may arrange a payment plan as a last resort.

You could end up receiving two surcharges of 5% and daily interest so I would pay it as quickly as you can as they don't usually turn a blind eye!!

Mikeyorks

If you ring them and make a payment arrangement ..... you will avoid the 5% Surcharge (of just over £100). But you only have until this evening to do that, as the Surcharge date is 28th Feb.

Or pay on your Credit Card ..... you do the sums.

With the plethora of info they issue ... can't see how you can mistake that the amount due 31st Jan (balancing payment for 07-08 + 1st POA for 08-09) is quite separate to that becoming due 31st July (2nd POA for 08-09)?

sarflee

I personally can see how OP could have misunderstood if filed on line and don't understand the payment on account procedure. Unfortunately it is NOT very clear regarding payments on account and the statement takes forever to update.

jimpix12

The most ridiculous thing about it is, say I have £1k owed on 07/08 and £1k owed on 08/09. If I pay £1k now, it should in theory pay off the earlier one, but it doesn't? There doesn't seem to be any system to it at all.

Anyway I have paid some of it off from my debit card and will set up direct debit once I've cleared the rest.