Paying Tax - 31st Jan

Stewboy1978

Evening

Posting onbelf of my Dad here - His tax bill is due at the end of this month obviously, however due to a few reasons he can't pay it until the middle of March.

On there website there is a number to call, either he will call or I will call on his behalf....Will they allow us to pay middle of March (With a penalty) or are we wasting our time?

The other alternative is - And this may sound daft but can it be paid by a Visa card (Mine!)

Thanks in advance

jem16

Best to phone HMRC and discuss the situation with them.

System

Is your dad self-employed? If he isn't and only completes a return because of his income and age allowances and if he doesn't owe more than a couple of thousand then he may be able to ask them to collect it over the 08/09 tax year via a reduction in his tax code.

Otherwise he can contact the HMRC and say he needs time to pay.

Ems!

Agree with Pam17 but you are supposed to submit your return by 30 Sept if you want them to collect via tax coding. ( Though HMRC have been known to bend this rule!)

Assuming the above doesn't apply and he is self employed, the following applies:

- You can't pay with a credit card ( though you can with a visa debit)

-Your dad will have to speak to them himself - they won't speak to you about his tax affairs. They will probably be Ok with him but no matter what - he will still pay the interest .

-If he leaves it to pay until middle of March , he will incur a 5 % surcharge as well as the interest charges ( which I think are around 6 percent ish but could be more - possibly 8 ish.)

- However, if he can pay by 27 feb ( and I mean here that the money musthave "cleared "with HMRC by then, then he won't incur the 5 % , but only the interest.
- If he can't pay the full amount by 27/2, pay as much as poss as the 5 % is charged on amount outstanding as at 28 Feb.

- As long as his tax return is submitted on time, he won't pay the £100 penalty.

hth

Hoddie_2

The 5% surcharge won't apply if you can agree a time to pay arrangement with HMRC.

Mikeyorks

You can pay by Visa Debit card (the BillPay link on their site) - but not by Credit Card.

If he's not a 'regular' they will almost certainly accept a deferred payment to mid-March. They will charge 7.5% interest from 1st Feb - so an initial payment (prior 31/1) would deflect that a little. They may ask for that - but should not make it conditional

BUT - you must make the arrangement prior to the due date otherwise there is a 5% surcharge levied 28/2. You avoid that if you get an arrangement in place prior. Also, phoning now - looks / sounds more 'compliant'.

But your Dad must 'phone - they won't talk to you unless you've filed a 64-8 (acting as his agent) with them. But they're not idiots - so if your Dad has problems and completes the basic security questions with them - they'll normally accept a 'discuss this with my son'.

Mikeyorks

Ems! wrote: »

A) but you are supposed to submit your return by 30 Sept if you want them to collect via tax coding. ( Though HMRC have been known to bend this rule!)


If he leaves it to pay until middle of March , he will incur a 5 % surcharge as well as the interest charges ( which I think are around 6 percent ish but could be more - possibly 8 ish.)

A) 30th Dec (via online) - in order to have up to £2k coded out
Interest rate on tax paid late is 7.5% from 6.1.08. The 5% surcharge levied a month after the due date ..... is not payable if a prior payment arrangement exists.

talkinpeace

OP
HMRC do not give a stuff who pays them the money so long as they get it.
If you can pay them by bank transfer or debit card by the 31st and then your dad pays you back in March , all should be fine.

[Deleted User]

Hi, Stewboy1978,

have a look at this thread, on similar theme, seems credit card payment is ok.

Ems!

[Deleted User] wrote:

Hi, Stewboy1978,

have a look at this thread, on similar theme, seems credit card payment is ok.

Hi , you can't pay by visa credit, only visa debit. The poster on the other thread did a balance transfer ( presumably to a bank account) which is how they "paid" by credit card. I suppose you coudl do something similar but carefullly consider whether it is cost effective, and speak to HMRC first to try to get an arrangement in place.

[Deleted User]

Hi,

got it, , transfer to own bank first and then to tax man.

Memo to self, 'put brain in gear first'. :rotfl: