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Payment of tax

Teatree
Posts: 21 Forumite


in Cutting tax
Don't know if this is the right place to post, but can't find anything else to do with tax, so here goes:
First it's not about cutting tax, it's about paying tax.
A member of my family has requested the IR to pay his tax monthly (he is self employed) and they have refused.
The operative was extremely rude and nasty and 'demanded' payment in full 'or else' I presume that means being passed to a higher authority ?
Well my relative is not refusing to pay at all, he wants to pay, but in monthly installments, he can't afford a large lump sum.
So question is: can the Inland Revenue refuse monthly payments ? if so, what happens next ?
Thank you in advance
First it's not about cutting tax, it's about paying tax.
A member of my family has requested the IR to pay his tax monthly (he is self employed) and they have refused.
The operative was extremely rude and nasty and 'demanded' payment in full 'or else' I presume that means being passed to a higher authority ?
Well my relative is not refusing to pay at all, he wants to pay, but in monthly installments, he can't afford a large lump sum.
So question is: can the Inland Revenue refuse monthly payments ? if so, what happens next ?
Thank you in advance
0
Comments
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Here are the rules regarding paying self assessment ax due
Deadlines for sending in your tax return
31 October: paper returns
If you send a paper tax return it must reach HMRC by midnight on 31 October.
So for the 2012-13 tax year (ending on 5 April 2013), the deadline for paper returns is midnight on 31 October 2013.
There are very few exceptions. As an example, the deadline may be later if HMRC send you the letter, telling you to complete a tax return, after 31 July. In this case the letter will tell you the deadline - it is usually three months from the date of the letter. Or if you're sending a Self Assessment return for a registered pension scheme or non-resident company, you can only send paper returns so the deadline isn't until 31 January.
31 January: online returns
Your online tax return must reach HMRC by midnight on 31 January.
So for the 2012-13 tax year, the deadline for online returns is midnight on 31 January 2014. There are very few exceptions. As an example, the deadline may be later if HMRC sends you the letter, telling you to complete a tax return, after 31 October. In this case the letter will tell you the deadline - it is usually three months from the date of the letter.
There's also an earlier deadline of 30 December if you want HMRC to collect any tax you owe through your tax code. You can ask for this if you owe less than £3,000. Please show this clearly on your tax return. HMRC will try to collect the tax due through your code, but they can't always do so.
http://www.hmrc.gov.uk/sa/deadlines-penalties.htm
Was the allegation of rudeness made because your family member didnt get the answer they wanted ? IF the person was rude , your family member can request a copy of the call.
As they have to complete the SA return they should be making provision to put the money to one side (perhaps in a saving accounts) to pay the bill when it becomes due - have they done this ?.
If the bill isnt paid on time then interest & penalties can accrue and the debt passed on for enforcement to either a D(ebt) C(ollection) A(gency) or a Field Force Officer for a distraint call.
Get the family member concerned to ring back and make a reasonable offer for repayment - it may well be accepted.
Good luck.0 -
Thank you for that reply.
The 'rudeness' was the fact that he wouldn't listen to anything that was said, nothing at all.
Also my relative offered to pay £400 immediately, and asked for some sort of payment slip to be sent so payment could be made against it, but the operatave refused to send anything.
So even though an offer has been made, it has been made impossible to carry through.
Am I right in thinking then, that he (relative) has until the end July to pay ?
IR man said 'payment must be made in full - NOW!' or will be passed on.0 -
You can pay monthly, but in advance. I am self employed and in the same situation, tax for 2011/2012 must be paid by 31 July 2013 or you face interest and or charges.
No immediate help, but try saving up for future years, helps with my offset mortgage. Bear in mind that compared to the PAYE employee we are paying this tax at least 15 months in arrears!0 -
Thanks for the replies, it seems there is a lesson to be learned here.
I'll pass these comments on and strongly 'suggest' that the appropriate amount is put aside regularly.
'Relative' is newly self employed and has much to learn it seems.
Thanks again.0 -
warwicktiger wrote: »You can pay monthly, but in advance. I am self employed and in the same situation, tax for 2011/2012 must be paid by 31 July 2013 or you face interest and or charges.
!
Tax for 2011/12 should have been paid by 31st January 20130 -
Thank you for that reply.
The 'rudeness' was the fact that he wouldn't listen to anything that was said, nothing at all.
Also my relative offered to pay £400 immediately, and asked for some sort of payment slip to be sent so payment could be made against it, but the operatave refused to send anything.
So even though an offer has been made, it has been made impossible to carry through.
Employers used to be sent a 'yellow book' in which to record their monthly PAYE returns, like a bank paying in book, but that hasn't been done for some years, AFAIK. We now pay online, quoting our reference, and job's done.Signature removed for peace of mind0 -
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