oh dear tax due and i forgot....

crunchtime

daft as it seems (and i can't believe i have done this) i was self-emp until june - i did my tax return for the prev year as soon as it was due - i knew i had to pay it by end of Jan but over the last few months have had a lot going on - new job...left my partner...kids sick...and i seem to have totally put it out of my mind...

Upshot is i know have letter from HMRC kindly reminding me that I owe them £770 by 31 jan and i cannot see a way i can pay this...already budgeting seriously - no savings...noone to ask for a loan....and i dont expect the tax man will give me an extension without adding interest which i cant afford....what on earth can I do??? Is there anything?????:question:

ceeforcat

what is the breakdown of the £770. You could well be able to reduce the POA for 2011/12 as you were only self employed until June 2011

crunchtime

ummm the form i have says balance due for 10/11 - previous years balance is at £0

Sorry whats the POA?

InsertWittyName

Payment on Account.

crunchtime

thanks

Ok so do i need to call them to discuss this with them? Is that the best way of sorting it?

BoGoF

Assuming the £770 is the actual tax due for 2010-11 then there won't be any POA for 11/12.

Pennywise

BoGoF wrote: »

Assuming the £770 is the actual tax due for 2010-11 then there won't be any POA for 11/12.

Not necessarily. Still possible for over £500 of it to be a POA with the balance of £270 or less being the balance from 10/11. Or if the liability for 10/11 is already covered by POA's in Jan and Jul 11, the full £770 could be POA for 11/12. Over to the OP to confirm.

jennifernil

OP said she was SE till June 2011, now employed presumably. So there would be minimal POAs if she has notified HMRC that she stopped SE in June.

As she doesn't know what POAs are, it doesn't sound like she has been making any.

manchesterred

intersting point

crunchtime

no i haven't been making any - interestingly i didn't know you could!

So as far as i can see the full amount is from my own self assessment return for 2010/2011.

I am still self emp but have negligible income - main source of income is from a part time job that I PAYE.

So I guess Im going to have to sell a kidney?

Hollysan

Hello Crunchtime,
If you are now employed you can ask them to code the liability in for next year so that you effectively pay it over the year from your salary. Normally you have to do this by 31 December - I would give them a ring and see if you can still do this.

Alternatively, you could pay whatever you can afford by the deadline as proof of good intent, and ring HMRC and ask them for the Time to Pay team. They can arrange a staggered payment over several months for you. Explain your circumstances - relationship breakdown , moving etc.

As for the payments on account, even if the £770 is partly POAs, you can reduce these to nil, as long as you do it by 31 January, because they would be based on your 2011 liability, and you were only se until June, so there will be a reduction in your se income this year. They don't normally ask for poa's unless your liability is over £500, which it won't be, I assume? You can check this when you ring, if POAs figure at all in this.

good luck,

Hollysan