what a mucking fuddle

Mikeyorks

clueless24 wrote: »

Do you have any thoughts or knowledge on whether HMRC will agree to some kind of instalment plan to pay whats owed?

I assume the SA Return filed for 10-11 is showing a sum of just under £1500 due 31.1.12? And that there's an additional payment on account for the same date (and again 31.7.12) of around £750? These sums relate to the anticipated liability for 11-12 (due Jan 13)

In which case - and taking into account your post #7 which infers some provision has been made - he should contact the payment support people asap :

You will need to call HMRC's Business Payment Support Service Helpline on Tel 0845 302 1435. This service is available for individuals and businesses who have not yet received a payment demand.

........ offer a lump sum up front and attempt to offer instalments which will settle the rest within a few months. The earlier you get in .... generally the better. There will be interest charged on the overdue amounts - but (3%) it's relatively mild.

clueless24

thanks for that, we are endeavouring to contact HMRC today or tomorrow. Out of interest do the payments on account for 2011-12 (due jan 13th) have to be paid on 31st jan 2012 or can they be deferred to jan 31st 2013? Bit confused as to why they have to pay in advance this year but didnt have to last year?

Also is the amount of £1500 which includes class 4 NI an overall bill or are they separate things, in essence can they arrange to pay the whole amount in instalments or is the NI due as a separate amount on its own, as they also have an amount of apprpx £200 for class 2 NI.

Mikeyorks

Payments on account (POAs) are due where the tax due for the previous year exceeds £1000 ...... hence why none due for 10-11? You've always had to make a contribution (the POAs) towards the following year tax ever since SA came in. It's always been 50% in each of Jan and July ...... only the threshold (used to be where the tax due was > £500) has changed.

You can reduce the POAs ...... but it doesn't make sense to do so if you know the liability for the following year will continue at more or less the same rate. As interest will then be charged right back to the original due date on any shortfall.

The tax and NI (class 4) should be regarded as a composite sum. The class 2 NI is completely separate - even though the dates are being harmonised with the SA due dates from Jan 2012.