Filed 2010-2011 return, owe ~£800, can I set up a budget payment plan?

dlon_ray

I just filed my self assessment tax return for my freelance work that I complete in addition to my full time job. I made a profit in this work and therefore owe £800 extra income tax.

Having not filled this in before 30 December (idiot) this can't be collected through my tax code for 2012-2013, as my 2009-2010 tax is being through my 2011-2012 tax code (my current tax code is 400L instead of whatever the normal one is to gain £693 tax I owed from 09/10)

I've just used the HMRC online tool to set up a direct debit instruction of £67 monthly for the next 12 months under the 'budget payment plan' option.

But I'm confused because my tax return calculation said that the amount due before 31 January 2012 is £796.60.

So bearing in mind I will only have paid £67 of this by then (first DD payment on 9th January), am I going to get a fine?

Or does setting up the budget payment plan mean I've arranged to pay it and thats OK?

If I need to pay the £800 in full by 31 January then I need to dig it out of savings

jennifernil

http://www.hmrc.gov.uk/payinghmrc/selfassessment.htm

This page seems to indicate that the budget payment plan is for paying in advance. I think you need to pay the amount due by the end of the month, otherwise you will certainly be charged interest, and penalties too by the sounds of it.

The penalties would be more than you would get in interest keeping the money in the bank.......

http://www.hmrc.gov.uk/sa/deadlines-penalties.htm#6

Time to raid your savings I think!

dlon_ray

Just spoke to HMRC, have to pay in full by 31st January and the budget payment plan goes towards my next tax bill

I was hoping they'd let me off missing 30th December bearing in mind there've been no working days between then and now but alas, it's apparently non-negotiable! Worth asking nonetheless

Thanks for your help!