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HMRC Advance Budget Plan Query
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[Deleted User]
Posts: 0 Newbie
in Cutting tax
Hi -
My husband is s/emp sole trader and has a very regular freelance income. Due to how it's laid out we would feel more comfortable moving to HMRC's budget payment plan for advance payments to be taken by direct debit.
In terms of this, he has done his 20/21 self assessment and knows what he owes by 31st Jan 2022 and then there is the prepped 'Payment on Account' amount ready.
If we wanted to switch to the direct debit plan, can we just pay what is currently owed for 20/21 and then not do the 'Payment on Account' but instead move to the budget payment plan?
I didn't know how this would work. Thanks
My husband is s/emp sole trader and has a very regular freelance income. Due to how it's laid out we would feel more comfortable moving to HMRC's budget payment plan for advance payments to be taken by direct debit.
In terms of this, he has done his 20/21 self assessment and knows what he owes by 31st Jan 2022 and then there is the prepped 'Payment on Account' amount ready.
If we wanted to switch to the direct debit plan, can we just pay what is currently owed for 20/21 and then not do the 'Payment on Account' but instead move to the budget payment plan?
I didn't know how this would work. Thanks
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No. If you meet the requirements to make payments on account, they are not optional.
You could have a budget plan to pay your payments on account but it would need to be set up in a way that each payment on account was cleared before its due date, else you'd be charged interest.You keep using that word. I do not think it means what you think it means - Inigo Montoya, The Princess Bride0
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