We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
Is having spent tax money on bills a valid excuse for not paying tax on time?

ColonelCabbage
Posts: 70 Forumite

in Cutting tax
Each year, self-employed people set aside money for their tax return. I spent that money on bills. Income-wise, previous tax year was "good" so I have a substantial amount of taxes to pay for that year by February 2024. But current tax year's income is terrible hence I had to spend the money set aside for taxes on bills instead.
In the eyes of HMRC would that be a valid excuse for me to not pay taxes on time?
(section "What if I can't afford to pay the tax?" of https://www.moneysavingexpert.com/news/2020/12/filing-a-self-assessment-tax-return--you-ve-got-a-month-until-th/ gives a list of valid excuses for not paying tax on time, but my excuse isn't part of the list)
In the eyes of HMRC would that be a valid excuse for me to not pay taxes on time?
(section "What if I can't afford to pay the tax?" of https://www.moneysavingexpert.com/news/2020/12/filing-a-self-assessment-tax-return--you-ve-got-a-month-until-th/ gives a list of valid excuses for not paying tax on time, but my excuse isn't part of the list)
0
Comments
-
It most definitely won’t. If you can’t pay the tax due in January you absolutely need to contact HMRC.You can set up a payment plan here:
https://www.gov.uk/difficulties-paying-hmrc
but I probably would be more inventive with your explanation other than you the fact that you had to pay other bills instead.2 -
Have you considered applying for benefits - if your income isn’t enough to pay your bills?1
-
@[Deleted User] inventive like what for example? I'm not good with that sort of thing. Also it's weird to have to invent something when the real excuse is definitely valid - I mean what can be more valid than the necessity to pay basic bills.
@amanda1024 with income of £0 for the month I get £850 (no partner no kid). Who can live with that? I can't even get council tax support because my council calculates it on the basis of previous tax year income - in my case way too high to qualify for council tax support.0 -
ColonelCabbage said:@[Deleted User] inventive like what for example? I'm not good with that sort of thing. Also it's weird to have to invent something when the real excuse is definitely valid - I mean what can be more valid than the necessity to pay basic bills.
@amanda1024 with income of £0 for the month I get £850 (no partner no kid). Who can live with that? I can't even get council tax support because my council calculates it on the basis of previous tax year income - in my case way too high to qualify for council tax support.A general statement to the effect that you
a) are struggling financially with the general cost of living at the moment
b) have a reduced income
and, as such, you are not in a position to settle your tax bill is the way to go.HMRC has got more sympathetic over the last few years. Prior to that it was much more difficult and they would have expected you to have exhausted all options to raise money.I don’t see why you shouldn’t have a decent chance of an agreement to a payment plan. One piece of advice though - stick to the agreement.3 -
ColonelCabbage said:I had to spend the money set aside for taxes on bills instead
In the eyes of HMRC would that be a valid excuse for me to not pay taxes on time?ColonelCabbage said:with income of £0 for the month I get £850 (no partner no kid). Who can live with that?
If you are operating as a sole trader and generating an income of "NIL", has the minimum income floor been applied by the UC DM?
Regardless of that, if the self-employment is not generating an income, can you seek regular employed work? It may result in a more comfortable standard of living and less stress.1 -
ColonelCabbage said:@ purdyoaten2 inventive like what for example? I'm not good with that sort of thing. Also it's weird to have to invent something when the real excuse is definitely valid - I mean what can be more valid than the necessity to pay basic bills.ColonelCabbage said:with income of £0 for the month2
-
@[Deleted User] thanks a lot for your advice, will def follow it!
@Grumpy_chap how in the world can two people live comfortably with £850 in the UK? Are you paying a rent?
@MattMattMattUK will stick to COL. It's 0 for the current months because I can't get any job - job market in IT is horrendous right now. Getting virtually no response to my applications, I've never seen that since I started many years ago.
0 -
ColonelCabbage said:
@Grumpy_chap how in the world can two people live comfortably with £850 in the UK? Are you paying a rent?
Since August and at least until March our income has been £650.
It is quite enough for day-to-day and we've not needed to draw on savings. We had a very wholesome Christmas and we went out for New Year's Eve. There is a lot of fun to be had with community.
1 -
"Sorry Mr Landlord i cant pay this month , im skint."
Why says Mr Landlord ?
"Because ive just had to pay my bills elsewhere and have nothing left for you."
Ive heard this a lot , and its no excuse whatsoever.
I cant see HMRC saying "oh dont worry poppit give it us when you are ready."
Being self employed takes a lot of planning and forward thinking and im sure is difficult but its the nature of the business. You should really have thought about it more in the good times im afraid and made sure enough was put aside in anticipation of the bill.0 -
njkmr said:"Sorry Mr Landlord i cant pay this month , im skint."
Why says Mr Landlord ?
"Because ive just had to pay my bills elsewhere and have nothing left for you."
Ive heard this a lot , and its no excuse whatsoever.
I cant see HMRC saying "oh dont worry poppit give it us when you are ready."
Being self employed takes a lot of planning and forward thinking and im sure is difficult but its the nature of the business. You should really have thought about it more in the good times im afraid and made sure enough was put aside in anticipation of the bill.0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.2K Banking & Borrowing
- 252.8K Reduce Debt & Boost Income
- 453.2K Spending & Discounts
- 243.2K Work, Benefits & Business
- 597.6K Mortgages, Homes & Bills
- 176.5K Life & Family
- 256.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards