Help please! HMRC self employed payment plan

jmb1

I hope I'm posting this in the right place....

I've been spending a few weeks discussing my options as with my current debt spiralling, I am unable to pay my forthcoming tax bill. My accountant and IFA's have all said as a priority simply telephone HMRC as they should be understanding and easily be able to set up a payment plan maybe over 12 or 24 months even. Then concentrate on tackling the card debt.

With this hope I rang just now and apologised, I've never paid late before and always filed on time, but simply don't have the funds to pay the required £7750 by January 31st. So she asked what I could pay on a plan and I said purely affordability wise, perhaps £150 to 300 per month. She flat out said "No, you have 3 months." But... that's almost 2600 per month which i simply can't afford, i said. That is what you can have as a payment plan, she said, totally abruptly.

I do have £4000 saved, but there ready I hoped to pay my £5k july bill. She said well you need to use that and pay that now. You then must pay the rest before your july bill, £625 per month. But that then means I've used my savings, and then I'm desperately scrimping and using all my available monthly funds to pay the January bill, so I cant claw anything back toward paying the july bill.

I really wasnt expecting someone so totally horribly unsympathetic. I know its my own fault that i havent saved enough and cant pay but what on earth do i do? I'm in the midst already of trying to budget to try to pay 16k of card debt. Is further card BT borrowing that got me into this situation in the first place my only option? My guess is that call has been logged so that is that. Perhaps I said the wrong thing.:( i'm now desperately needing help, please.

BoGoF

The only reason you have some savings is because you haven't made provision for your tax bill. Paying tax on time isn't a choice for most of us.

Expecting that length of time to pay was unrealistic. You will have another bill becoming due by then and interest will be due on top. Uf you don't make more sensible proposals that are accepted by end of Feb then you will have a 5% late payment penalty.

If you can't raise the funds then I suggest you contact one of the debt charities to discuss your options.

Dazed_and_confused

What BoGoF says.

But is part of the amount due on 31 January a payment on account for 2019:20?

jmb1

Dazed_and_confused wrote: »

What BoGoF says.

But is part of the amount due on 31 January a payment on account for 2019:20?

Yes I believe so?

Dazed_and_confused

Do you think your Self Assessment liability for the current tax year (2019:20) will be more than last year, less than last year or roughly the same as last year?

jmb1

Dazed_and_confused wrote: »

Do you think your Self Assessment liability for the current tax year (2019:20) will be more than last year, less than last year or roughly the same as last year?

Ah I see where you're coming from, to reduce payments on account, yes my accountant has answered that one. There's no reason they'll be lower by much if anything.

jmb1

Update. I called back and got through to a different friendlier sounding chap who thankfully agreed to a 12 month repayment plan at £732 per month which includes my 5k July 2nd payment on account.