Self assessment payment help

chloecat_2

Due to various disasters last year, we are approaching the Jan 31st deadline with a £1320 tax bill and no way of paying.

Husband is a self employed sales rep, has been self employed for 11 years and this is the first time we have had difficulty paying.

I don't work due to a health problem. What happens when you ask for an extention, and how long can you get one for? We have a car finance agreement up in April which will leave us £500 per month better off from May.

Any advice?

Thanks, chloecat

moneypooh

The tax office are the best people to talk too, obvious I know, but they do take each case separately. I'd write down a payment plan so you can talk to them about your finances. Or make an appointment to see them.
I'd do this asap and not leave it.
good luck, they are there to help.

Dave101t

as long as you file by the 31st, any money owed will just accrue interest.

Rolo_Tomasi

Dave101t wrote: »

as long as you file by the 31st, any money owed will just accrue interest.

Not quite right - any 08/09 balancing payment still outstanding on 28th February will attract a 5% surcharge unless you contact the business payment support line on 0845 302 1435 and agree a payment schedule with them. they do look at each case individually but are generally sympathetic and will accept monthly payments.

Just a thought - is any of the debt a payment on account for the current year? If it is and this is based on previous years (higher) profits you can always apply to reduce this using form SA303.

chloecat_2

I filed a reduction of payment on account for this year which has been granted, it's the 08-09 that's the expletive!

Thanks all for your advice

chloecat_2

Just a quick update:

Phoned the tax office and they have allowed us very reasonable terms to pay balance off by July.

Lovely people

Chloecat