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Original poster

Extra time to pay back tax

20 replies

GimbleInTheWabe · 30/06/2018 16:41

Has anyone ever called up HMRC to request extra time to pay back tax as a self employed person?
I stupidly have myself in a situation where I may not be able to pay back the £4000+ I owe by end of July. I should be able to pay back approx £2000 of it but probably not the whole amount. I saw on the website you may be able to request extra time to pay back so has anyone ever successfully done this and can they share theirs experience I.e how much extra time you got, did you get charged etc?

As a last resort I could ask DP to help me out but obviously I'd rather sort it out myself first if I can. We have an 8mo DS so the stress is not good but I'm trying to work as much as poss.

OP posts:
Battleax · 30/06/2018 16:44

They’re quite hardcore, apparently.

I’d guess at £1k pcm payment plan being the best they’ll offer, hiding from what I’ve heard. Don’t know about charges.

Original poster
GimbleInTheWabe · 30/06/2018 16:49

I'm not sure whether it's better to get an overdraft on my account (Santander 123) to help cover it but that would cost me £1 a day for every day I'm in it apparently.

My stomach is in knots that I've got myself in this situation. I can't believe I've been so stupid.

OP posts:
MirandaWest · 30/06/2018 16:51

Is this for a payment on account? Did you pay what you needed to in January?

Battleax · 30/06/2018 16:53

It’s manageable. Ring them. Talk to them. See what they say. Then ask for two days’ thinking time and work out what your cheapest option is.

I’ve known several people get through similar slightly stressed by essentially unscathed.

Original poster
GimbleInTheWabe · 30/06/2018 16:56

I think payment on account.. @MirandaWest yes paid all in January. Tbh I thought I'd paid the amount I needed to in January but I can't now find the letter. It's so hard to find time to keep on top of it as well as continue WFH with DS to care for.

Thanks @Battleax I think I will call and get some advice from them.

OP posts:
lanbro · 30/06/2018 17:12

I have always found HMRC to be very amenable, so long as you are in contact, honest and can offer something. We were going to struggle with a vat bill, paid £1k upfront and got an extra 6 weeks for the balance of over £7k. Always worth a try anyway, the worst they can say is no

Original poster
GimbleInTheWabe · 30/06/2018 17:22

Thank you @lanbro, glad to hear that they helped you, that puts my mond at ease. Did you get charged extra for paying late? How did you manage to get the money that quickly? Of course I understand you may not want to discuss that.

OP posts:
lanbro · 30/06/2018 17:26

No penalty, we knew we had money coming in, it was more a cash flow issue than an inability to pay at all

Original poster
GimbleInTheWabe · 30/06/2018 17:32

Thanks @lanbro. I think I could cover the rest of it within 8 weeks hopefully so I think I should talk to them.

OP posts:
lanbro · 30/06/2018 17:38

Definitely no harm in enquiring, good luck!

MessySurfaces · 30/06/2018 21:43

OP, if you have an 8 month old then did you earn less in 17-18 than in 16-17? What you owe now, in July, is your second payment on account for 17-18, and they base it on the tax you paid for 16-17. So if actually you worked less in 17-18 due to having had a baby, and earned less, you may well not owe it.
Have you done your 17-18 tax return, the one which is not due til next January? Do it now, if not, so you get an accurate figure for the July payment, rather than the estimate based on 16-17. Then if you still owe more than you can pay, ring them.

Original poster
GimbleInTheWabe · 30/06/2018 22:47

Hi @MessySurfaces thanks for replying. Yes i did earn less in 17-18 (I think ALOT less too!) so you're right I may well earn less. Annoyingly I didn't keep that well up with my accounting but I actually made a good dent in back dating it this evening whilst DS has been sleeping so I think I might carry on doing this over he next few evenings and hopefully you'll be right and I don't have to pay as much!
Would I have to call to get them to check or will it happen automatically?
Thanks again!!

OP posts:
MessySurfaces · 01/07/2018 08:30

Glad to help! I had the same when I had my babies...
It should update automatically, but there might be a little time lag. I'd do the return as soon as you possibly can, and if you haven't had a revised bill in the post by late July, ring them then.

TalkinPeace · 01/07/2018 20:43

If its a payment on account then you have a lot more leeway.
Talk to them
pay what you can each month
and get your next tax return in early

Original poster
GimbleInTheWabe · 01/07/2018 22:13

Got another 5 or so months of my accounts filled in tonight so hopefully will have it finished tomorrow evening and can getthe tax return sent it. Takes so long to cross reference everything, I'm 100% going to stay on top of it from not on.

However, I think I earned almost half in 17/18 than I did in 16/17 so there's a chance I only actually owe about £1000.

Thanks @TalkinPeace. Even though I've done it for more than 5 years I find it all so confusing. Maths is not my strong point!!! Hopefully I'll be able to pay it when the amount is recalculated but if not hopefully they'll be more relaxed with it as you say.

OP posts:
Wildlingofthewest · 01/07/2018 22:16

Get yourself a decent accountant and let them deal with all of your paperwork for you. We did this and the peace of mind is invaluable.

Hoppinggreen · 02/07/2018 10:05

I have a ltd company and due to a large unexpected VAT bill just before my annual tax was due I didn’t have enough to pay the tax in full
When I phoned up the lady on the phone was absolutely lovely and put a payment plan in place
nothing to lose by calling

Original poster
GimbleInTheWabe · 03/07/2018 19:06

Sent in my tax return today (feel v organised now!) and it is looking like actually I might be owed some tax from what I paid on account in Jan. So all that fretting was for nothing!

I'm so happy to have it sorted and done and the lady on the phone was really helpful when I called up for some inevitable questions about my tax return.

Thank you to @MessySurfaces for suggesting that I get my return in early and to everyone else who replied for the advice.

Note to self: keep up with your accounts!!

OP posts:
Original poster
GimbleInTheWabe · 06/07/2018 19:20

So it turns out I'm now £180 in credit to HMRC! Panic averted and this week I have been an accounting saint Halo

OP posts:
TalkinPeace · 06/07/2018 21:20

Nice.
Well done for taking control

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