Reducing Payment on Account

4Chickens

I am hoping some of you peeps can help.

Hubby is self-employed and is planning on reducing his hours from 78 hrs per week to approx 56. I would like to get our payment on account reduced but don't know what form to fill in, or is it a letter that needs sending?
His year end is 5 April. Year end 05/04/09 will be submitted to HMRC by 30 Sept. Are we too late to apply for a reduction?

Ste_C

Did you make a payment on account on 31 July 2009?

You can reduce the POA on the HMRC if you have an online account.

4Chickens

Ste C

Yes, we made a payment on account on 31 July. It was approx £4800

We don't file online but our accountant files Hubby's tax return online. An additional problem is the accountant is recovering from cancer surgery and communication is not that swift at the moment. I will be lucky if, when I get back from holiday on 28 Sept, the tax return is ready for submission. Dunno what to do.

Ste_C

It takes literally 30 seconds to reduce it online, but if you don't get any joy with your accountant then you can download this form and send it to HMRC

http://search2.hmrc.gov.uk/kbroker/hmrc/forms/viewform.jsp?formId=880

4Chickens

Thanks Ste C

I have downloaded form SA303 and will be submitting when tax return is submitted.

thanks for your quick response

BoGoF

Not sure why the reduction in hours now would have an effect on the 2008-09 POA's. The POA's made in January and July will go toward his 2008-09 tax that will be calculated once the 2008-09 return is submitted. Any reduction in his hours now will only affect the 2009-10 POA's which will only be calculated once the final 2008-09 liability is known.

Edit - just realised that is what you meant. There is a box on the Tax Return to reduce the POA's, no need to send SA303 seperately,

suso

cindiedunkley wrote: »

I am hoping some of you peeps can help.

Hubby is self-employed and is planning on reducing his hours from 78 hrs per week to approx 56. I would like to get our payment on account reduced but don't know what form to fill in, or is it a letter that needs sending?
His year end is 5 April. Year end 05/04/09 will be submitted to HMRC by 30 Sept. Are we too late to apply for a reduction?

Slightly confused here.

which year are you trying to reduce down the POA's, if its 2008/09 then the time period has passed, as far as I'm aware any reduction to POA's must be made before they are due.

If its for the year 2009/10 (POA1 due Jan 2010, POA2 due Jul 2010) then you can complete a section on the return to reduce down the POA's or alternatively once the return is filed and the charge recorded then call HMRC explain that your OHG is working less hours and they will agree to reduce down the POA

You say it will be submitted to HMRC by 30th Sept - Is this you own personal filing date or were you not aware that paper returns can now be filed by 31st October

4Chickens

I thought that the figure for our payment's on account due in 2010 were based on the tax and ni due for tax year 2008/2009. If this is the case then our income will have reduced by approx 30%, therefore our payments on account should be reduced too because we will be trying to pay the same level of taxation with a reduced month on month revenue. Anyway, I shall get hubby to talk to tax office when we get back from holiday and see what is the best thing to do.

Thanks for your help everyone:T