Arrangements for paying Income Tax

PokerFace_2

Hi
I am due to pay some tax on account by the end of July thsi year, I was wonderuing how arrangements work and if anyone has set-up up before.. I owe about 9.5k and woudl like to spread this over 4/5 months if possible, woudl they let me do this? shoudl I call now or wait until July?

any help is much apprecaited!

4Chickens

As far as I am aware, you have until 31 July to pay. Then your next payment should be paid by 31 January. My husband is self employed and we pay his tax monthly to spread the cost out. It almost feels like PAYE, and this way you can't spend it on anything else. Phone HMRC and clarify the exact amount that has to be paid to them by 31 July. Then you can budget for the next payment in January. Hope this helps.

fengirl_2

You need to call now, don't wait until the tax is due. Be prepared to make an offer and also to produce a monthly income and expenditure statement to back it up.

Have you looked at whether you can apply to reduce your payment on account due to reduced profits?

PokerFace_2

cindiedunkley wrote: »

As far as I am aware, you have until 31 July to pay. Then your next payment should be paid by 31 January. My husband is self employed and we pay his tax monthly to spread the cost out. It almost feels like PAYE, and this way you can't spend it on anything else. Phone HMRC and clarify the exact amount that has to be paid to them by 31 July. Then you can budget for the next payment in January. Hope this helps.

Hi there its 9.5k that I owe by July 31st and I'm hoping that I can pay around 2.5k in July and then 2k a month or so until its settled, do you think they will let me do this?

mitchaa

PokerFace wrote: »

Hi there its 9.5k that I owe by July 31st and I'm hoping that I can pay around 2.5k in July and then 2k a month or so until its settled, do you think they will let me do this?

Surely you should have been portioning off each month rather than wait until last minute

Why not £2.5k at the end of May, £2k in June and £2k in July. Why are you starting your plan in July and not now?

What about next years tax take? Surely this will teach you to portion off each month to avoid the same thing happening this time next year?

PlutoinCapricorn

Mitch, it is relatively easy for someone like me to stash 20% of what I earn from consultancy, in readiness for the tax bill. As you say, it is good practice.

I have never run a real business as such, but I guess that things are not so simple: the OP may have a lot of expenses some months, there may be cash flow problems too.

PokerFace_2

mitchaa wrote: »

Surely you should have been portioning off each month rather than wait until last minute

should have been yes but havent been

mitchaa wrote: »

Why not £2.5k at the end of May, £2k in June and £2k in July. Why are you starting your plan in July and not now?

I get paid commission which is heavily weighted towards the end of the year, I will have the cash in Sept/Oct but dont get any commission in the next 3 months, hence the problem

mitchaa wrote: »

What about next years tax take? Surely this will teach you to portion off each month to avoid the same thing happening this time next year?

lesson learnt but that doesnt help pay what I owe!!!!