Struggling to pay self assessment tax, finding alternatives

user67340348

I am self employed and my income has dropped significantly this current tax year, and as of around April I've been earning around half of what I did the previous year. I can no longer afford to live and am moving back in with my parents and looking for a full-time job

As well as that, I got a really mixed up with the dates and thought that, because of my low earnings, I'd have hardly any tax to pay in January... I was actually thinking I might get a rebate (foolish I know)

But have just found out recently that I have to try and find £1850 within just over a month.

I called up HMRC today to see if I could pay in installments. I *can* pay them, just it'll be a struggle to pay them on time. HMRC said I need to try and find alternative means of payment my taxes such as a loan or overdraft from the bank.

Is it likely I'll be able to get a small business loan to pay taxes? I've taken one out in the past but it was for business purposes, I doubt they'd agree to give me one if I said it was because I'm struggling to pay my tax?

I do have a £500 overdraft on my business account, so I could try and increase that... but going by my earnings I doubt they'd increase it too much (if at all)

Any advice would be appreciated

user67340348

I forgot to say, my business bank account is with the HSBC

I think I can apply to increase my overdraft online without having to call. If I apply and get refused, would that affect my credit history at all?

Is it worth me just giving that a go?

gt94sss2

A couple of ideas:

1. Is part of your January 17 tax bill, a payment on account for the current tax year?

If so, then you can fill in a SA303 form letting HMRC know your income during 2016-17 is going to be lower than it was during 2015-16 which could lower the amount payable by/on 31 Jan.

2. HMRC also accept credit cards for a small fee (depending on the type of credit card).

You could consider the possibility of using a credit card which has a 0% offer on purchases - as long as you are confident that you will be able to pay the card off in full before any interest free period ends.

This is also likely to be cheaper than taking out a loan or overdraft with your bank.