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Original poster

Urgent tax query

12 replies

5hrssleepaverage · 31/07/2023 21:11

I have to pay £1200 tax today. I have half the money to pay it and have just done so, but I assumed (like last year) I would be able to pay the rest in instalments. However, it hasn't allowed me to do this. I'm going to try and call tonight but will I get a fine now?

OP posts:
Wotchaz · 31/07/2023 21:15

No, there’s no penalty for late payment only interest charged. Though given the current base rate means this is calculated at 7.5%, you should try and pay it as soon as possible (as long as you’re not borrowing at a higher rate to fund the payment!).

caerdydd12 · 31/07/2023 21:17

Assuming this is your POA due today then no, the due date is the due date. You won't get fined but will be charged interest daily until it's paid in full.

DelilahBucket · 31/07/2023 21:30

It sounds like you are paying "on account" if you were expecting not to pay it all up front. This will not change and you will have another payment due in January. Moral of the story, save money for your tax bill as you earn it.

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Original poster
5hrssleepaverage · 31/07/2023 21:34

@DelilahBucket thanks for the 'moral' if you knew how many jobs I do and how many plates in spinning you'd realise how very unhelpful your comment is! As I said, last year they let me pay in installments...I assumed I would have had the option to do the same!

OP posts:
Original poster
5hrssleepaverage · 31/07/2023 21:35

Thanks @Wotchaz @caerdydd12 appreciate the advice

OP posts:
JellyBeanFactory · 31/07/2023 21:37

If you're unable to pay your tax bill, give HMRC a call (make sure you have tea/coffee and time to wait!) and see if they will set you up with a time-to-pay arrangement. The sooner you contact them, the better. Everyone I know who had applied, bar one, has been granted one.

declutteringmymind · 31/07/2023 21:40

I know this won't help you at the moment but I'm looking into paying monthly. Apparently this can be arranged online so it's on my list of things to sort this week having just paid my 2nd instalment today. I don't like the looming lump sums every 6 months, although I should be earning interest on it.

caerdydd12 · 31/07/2023 21:40

JellyBeanFactory · 31/07/2023 21:37

If you're unable to pay your tax bill, give HMRC a call (make sure you have tea/coffee and time to wait!) and see if they will set you up with a time-to-pay arrangement. The sooner you contact them, the better. Everyone I know who had applied, bar one, has been granted one.

This won't stop the interest accruing unfortunately so you may as well just pay it off as soon as you can rather than requesting a time to pay arrangement.

DelilahBucket · 31/07/2023 22:04

5hrssleepaverage · 31/07/2023 21:34

@DelilahBucket thanks for the 'moral' if you knew how many jobs I do and how many plates in spinning you'd realise how very unhelpful your comment is! As I said, last year they let me pay in installments...I assumed I would have had the option to do the same!

I juggle the same amount of plates and run my own business, but as a self employed person I know that I have to save money as I earn it to pay my taxes. It's part and parcel of being responsible for your own tax bill. Not being so, as you are discovering, is costly.
I would hazard a guess that you didn't pay in installments last year, your bill wasn't actually due until January. Now you have gone over the £1000 tax due and are having to pay on account.

PickledPurplePickle · 31/07/2023 22:07

Have you logged in to your online account with HMRC? You should have the option there to request a payment plan

https://www.gov.uk/pay-self-assessment-tax-bill/pay-weekly-monthly

The self assessment helpline is now closed, so it will be hard to call them at the moment

I would set up a DD for the plan you would like to offer and stick to it

You will have to pay interest on the payment that is overdue

Have you actually completed your return to 5 April 2023? Are the payments accurate?

Pay your Self Assessment tax bill

Payment options for your Self Assessment tax bill - Direct Debit, bank transfer, through your tax code, debit or credit card, cheque and pay weekly or monthly

https://www.gov.uk/pay-self-assessment-tax-bill/pay-weekly-monthly

RoyalImpatience · 31/07/2023 22:23

What is paying on account?

determinedtomakethiswork · 31/07/2023 22:41

If you are self-employed note that the team that deals with self assessment is not working on that until 4 September.

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