Need a solution for paying tax to HRMC

ManyWays

Have you gone back and asked HMRC to pay over a longer period? 

MattMattMattUK

sterling30 said:

Scenario:

- Can't afford tax bill.

Problem:

1. HMRC's payment plan offer doesn't work for me. I need more time.

Do you mind if I ask why HMRC's payment plan does not work? They are reasonable and they take account of income and essential outgoings and set the payments accordingly, time is not really an issue with those, they set the amount based on what one can afford.

The amount you’ll be asked to pay each month will be based on how much you have left after you pay any rent, food or utility bills and fixed outgoings you have, like subscriptions.

You’ll usually be asked to pay around half of what you have left over each month towards the tax you owe.

https://www.gov.uk/difficulties-paying-hmrc/how-much-you-pay

sterling30

MattMattMattUK said:

sterling30 said:

Scenario:

- Can't afford tax bill.

Problem:

1. HMRC's payment plan offer doesn't work for me. I need more time.

Do you mind if I ask why HMRC's payment plan does not work? They are reasonable and they take account of income and essential outgoings and set the payments accordingly, time is not really an issue with those, they set the amount based on what one can afford.

The amount you’ll be asked to pay each month will be based on how much you have left after you pay any rent, food or utility bills and fixed outgoings you have, like subscriptions.

You’ll usually be asked to pay around half of what you have left over each month towards the tax you owe.

https://www.gov.uk/difficulties-paying-hmrc/how-much-you-pay

It's more complicated than that. Ideally I'd like to pay HMRC in full and then deal with the payments over time with a credit card which can be very flexible to manage (overpaying etc.). I don't want to be caught up in a situation where I'm being controlled by HMRC and having to make calls to them if necessary as that will be a huge hassle.

born_again

sterling30 said:

MattMattMattUK said:

sterling30 said:

Scenario:

- Can't afford tax bill.

Problem:

1. HMRC's payment plan offer doesn't work for me. I need more time.

Do you mind if I ask why HMRC's payment plan does not work? They are reasonable and they take account of income and essential outgoings and set the payments accordingly, time is not really an issue with those, they set the amount based on what one can afford.

The amount you’ll be asked to pay each month will be based on how much you have left after you pay any rent, food or utility bills and fixed outgoings you have, like subscriptions.

You’ll usually be asked to pay around half of what you have left over each month towards the tax you owe.

https://www.gov.uk/difficulties-paying-hmrc/how-much-you-pay

It's more complicated than that. Ideally I'd like to pay HMRC in full and then deal with the payments over time with a credit card which can be very flexible to manage (overpaying etc.). I don't want to be caught up in a situation where I'm being controlled by HMRC and having to make calls to them if necessary as that will be a huge hassle.

Then the only way is a money transfer card & the resulting % fee for the transfer. You can then pay from you bank account.

But would you get a balance transfer card as it is & with a suitable amount to cover you tax bill.

Sadly it does not matter how complicated things are. There is a very limited way to do what you want. Other than liquidate some of your other assets.

MattMattMattUK

sterling30 said:

MattMattMattUK said:

sterling30 said:

Scenario:

- Can't afford tax bill.

Problem:

1. HMRC's payment plan offer doesn't work for me. I need more time.

Do you mind if I ask why HMRC's payment plan does not work? They are reasonable and they take account of income and essential outgoings and set the payments accordingly, time is not really an issue with those, they set the amount based on what one can afford.

The amount you’ll be asked to pay each month will be based on how much you have left after you pay any rent, food or utility bills and fixed outgoings you have, like subscriptions.

You’ll usually be asked to pay around half of what you have left over each month towards the tax you owe.

https://www.gov.uk/difficulties-paying-hmrc/how-much-you-pay

It's more complicated than that. Ideally I'd like to pay HMRC in full and then deal with the payments over time with a credit card which can be very flexible to manage (overpaying etc.). I don't want to be caught up in a situation where I'm being controlled by HMRC and having to make calls to them if necessary as that will be a huge hassle.

HMRC are not looking to control you, just to get paid the money that is due, they will be more than happy to accept overpayments as well, they just will not accept underpayments. You can make an overpayment at any time via their website if you are in a Time to Pay agreement so no need to call them either. Are you looking to spread the repayments over a longer period than HMRC will allow, is that what you meant by "I need more time", so that you can maintain higher expenditure on other things whilst repaying it? 

Malkytheheed

sterling30 said:

No, apparently not.

I'm not usually beaten. There must be a way...

I mean no offence but you have been "beaten" by a tax bill that you must have known was coming and should have planned for? 

As for paying for something you say you can't afford with interest bearing debt (credit cards) This is a terrible idea on every level. Speak to HMRC and see what they can do for you. 

sterling30

Malkytheheed said:

sterling30 said:

No, apparently not.

I'm not usually beaten. There must be a way...

I mean no offence but you have been "beaten" by a tax bill that you must have known was coming and should have planned for? 

As for paying for something you say you can't afford with interest bearing debt (credit cards) This is a terrible idea on every level. Speak to HMRC and see what they can do for you. 

I was expecting someone to make a comment like that. If you must know it was all planned for and saved for, but the business has since gone tits up so I need the money to pay for mortage etc. until I can sort myself out.

There would be no interest being beared - 0%.

sterling30

MattMattMattUK said:

sterling30 said:

MattMattMattUK said:

sterling30 said:

Scenario:

- Can't afford tax bill.

Problem:

1. HMRC's payment plan offer doesn't work for me. I need more time.

Do you mind if I ask why HMRC's payment plan does not work? They are reasonable and they take account of income and essential outgoings and set the payments accordingly, time is not really an issue with those, they set the amount based on what one can afford.

The amount you’ll be asked to pay each month will be based on how much you have left after you pay any rent, food or utility bills and fixed outgoings you have, like subscriptions.

You’ll usually be asked to pay around half of what you have left over each month towards the tax you owe.

https://www.gov.uk/difficulties-paying-hmrc/how-much-you-pay

It's more complicated than that. Ideally I'd like to pay HMRC in full and then deal with the payments over time with a credit card which can be very flexible to manage (overpaying etc.). I don't want to be caught up in a situation where I'm being controlled by HMRC and having to make calls to them if necessary as that will be a huge hassle.

HMRC are not looking to control you, just to get paid the money that is due, they will be more than happy to accept overpayments as well, they just will not accept underpayments. You can make an overpayment at any time via their website if you are in a Time to Pay agreement so no need to call them either. Are you looking to spread the repayments over a longer period than HMRC will allow, is that what you meant by "I need more time", so that you can maintain higher expenditure on other things whilst repaying it? 

Thanks I appreciate your time on this. To be honest I haven't contacted them yet. I read online that they offered 12 months so I squashed the idea. But from what you are saying it sounds like that isn't set in stone and a longer term can be negotiated. I will contact them and find out.

MattMattMattUK

sterling30 said:

MattMattMattUK said:

sterling30 said:

MattMattMattUK said:

sterling30 said:

Scenario:

- Can't afford tax bill.

Problem:

1. HMRC's payment plan offer doesn't work for me. I need more time.

Do you mind if I ask why HMRC's payment plan does not work? They are reasonable and they take account of income and essential outgoings and set the payments accordingly, time is not really an issue with those, they set the amount based on what one can afford.

The amount you’ll be asked to pay each month will be based on how much you have left after you pay any rent, food or utility bills and fixed outgoings you have, like subscriptions.

You’ll usually be asked to pay around half of what you have left over each month towards the tax you owe.

https://www.gov.uk/difficulties-paying-hmrc/how-much-you-pay

It's more complicated than that. Ideally I'd like to pay HMRC in full and then deal with the payments over time with a credit card which can be very flexible to manage (overpaying etc.). I don't want to be caught up in a situation where I'm being controlled by HMRC and having to make calls to them if necessary as that will be a huge hassle.

HMRC are not looking to control you, just to get paid the money that is due, they will be more than happy to accept overpayments as well, they just will not accept underpayments. You can make an overpayment at any time via their website if you are in a Time to Pay agreement so no need to call them either. Are you looking to spread the repayments over a longer period than HMRC will allow, is that what you meant by "I need more time", so that you can maintain higher expenditure on other things whilst repaying it? 

Thanks I appreciate your time on this. To be honest I haven't contacted them yet. I read online that they offered 12 months so I squashed the idea. But from what you are saying it sounds like that isn't set in stone and a longer term can be negotiated. I will contact them and find out.

They base it on what you can afford, eg. if after fixed costs (mortgage/rent, bills, food, subscriptions) you have £500 pcm left then they will want £250, if you have £900 left they will want £450. On an agreed repayment their interest rate is 3% (base rate -1%) so whilst not without cost it is still fairly low cost. There is no maximum length of the period for Time to Pay, it will be based entirely on the affordability criteria, though if you were going to take longer than a year they may also want to check you were making provision for future tax bills as well.

If you were to cut outgoings back to a minimum how long to do you think it would cost to repay vs on the above basis? If you had a severe belt tightening could you take a significant chunk out of it and give yourself some more breathing room?

sterling30

MattMattMattUK said:

sterling30 said:

MattMattMattUK said:

sterling30 said:

MattMattMattUK said:

sterling30 said:

Scenario:

- Can't afford tax bill.

Problem:

1. HMRC's payment plan offer doesn't work for me. I need more time.

Do you mind if I ask why HMRC's payment plan does not work? They are reasonable and they take account of income and essential outgoings and set the payments accordingly, time is not really an issue with those, they set the amount based on what one can afford.

The amount you’ll be asked to pay each month will be based on how much you have left after you pay any rent, food or utility bills and fixed outgoings you have, like subscriptions.

You’ll usually be asked to pay around half of what you have left over each month towards the tax you owe.

https://www.gov.uk/difficulties-paying-hmrc/how-much-you-pay

It's more complicated than that. Ideally I'd like to pay HMRC in full and then deal with the payments over time with a credit card which can be very flexible to manage (overpaying etc.). I don't want to be caught up in a situation where I'm being controlled by HMRC and having to make calls to them if necessary as that will be a huge hassle.

HMRC are not looking to control you, just to get paid the money that is due, they will be more than happy to accept overpayments as well, they just will not accept underpayments. You can make an overpayment at any time via their website if you are in a Time to Pay agreement so no need to call them either. Are you looking to spread the repayments over a longer period than HMRC will allow, is that what you meant by "I need more time", so that you can maintain higher expenditure on other things whilst repaying it? 

Thanks I appreciate your time on this. To be honest I haven't contacted them yet. I read online that they offered 12 months so I squashed the idea. But from what you are saying it sounds like that isn't set in stone and a longer term can be negotiated. I will contact them and find out.

They base it on what you can afford, eg. if after fixed costs (mortgage/rent, bills, food, subscriptions) you have £500 pcm left then they will want £250, if you have £900 left they will want £450. On an agreed repayment their interest rate is 3% (base rate -1%) so whilst not without cost it is still fairly low cost. There is no maximum length of the period for Time to Pay, it will be based entirely on the affordability criteria, though if you were going to take longer than a year they may also want to check you were making provision for future tax bills as well.

If you were to cut outgoings back to a minimum how long to do you think it would cost to repay vs on the above basis? If you had a severe belt tightening could you take a significant chunk out of it and give yourself some more breathing room?

3% is a deal breaker so thank you for informing me of that. I assumed they wouldn't charge interest, having never done this before I really had no idea. Might as well use the credit card at 0% and pay the £150 Curve charge. Also I would rather spare the BS of having to explain to someone I don't know everything about my finances, which as it happens are totally up in the air. Even I don't know from one month to the next.