Tax return penalty

[ErnieAndBernie]

I've fucked up and filed a tax return really late. So late it's given me a £1300 penalty. I don't have £1300 to pay it in one go. I can only afford an initial lump sum of about £300 then I need to offer to pay the rest in instalments. I have some questions

1. Will this affect my credit rating if I pay in bits not in one go?
2. What's the best way to work out what to offer them? Do my budget and work out what's left to pay them and explain that to them?

Has anyone got experience of this?
I know this is a stupid and expensive learning curve for me, what I really need is practical advice.

Thanks

I've been doing some reading and I wonder if I can appeal?
Tax year finished April 2017
I separated from husband and moved myself and my children back to the uk in July 2017
I have spent the last year continually chasing xh for mortgage and child support payments nearly every month
My son found it extremely hard to settle for the first 9 months we were back
Xh and I have only just agreed on me and kids staying in house which has been extremely stressful to live with
Now going through a divorce
I managed to pay the £100 fine back in March with every intention of doing the return but life has been so stressful I just hadn't managed it till tonight

Do anyone have any advice?

I think you will be able to negotiate a repayment plan but unfortunately taxes have to come top of your to do list exhausted or not. You can ask nicely but I really wouldn’t be hugely optimistic. Re the repayment plan, it will be expected to be as fast as you can realistically afford. Remember that you may also have taxes due to be paid which could add to the bill.

Can't harm to appeal, so definitely do it. They may reduce the penalties due to extenuating circs.

Also, tax debt, including penalties, doesn't affect credit scoring etc and yes, they will accept it in drive and drabs even if it's not agreed iyswim. My advice, is appeal and depending on outcome just crack.on with paying it off in little and often chunks. If you do that you won't get too much hassle ime. Debt collectors usually only involved for actual non payers, rather than someone making regular payments towards the debt.

You can appeal but I don't think you will get anywhere with that and you can set yourself a payment plan.

It won't affect your credit rating as long as it doesn't go to a debt collection agency.

Thank you. It's not a mistake I'll be making again. I won't have to do self assessment any more anyway as no reason to and I've told them that in the submitted assessment.
Do you know of any reasonable templates I could find to help me appeal? I know there's an online form but it's the bit about the circumstances that I'd like to word properly

To be honest, although you've clearly had a tough few months, none of your circumstances fall under HMRC's "reasonable excuses" for late filing:

www.gov.uk/tax-appeals/reasonable-excuses

Of course you have nothing to lose by appealing but I don't think you have the strongest case. I'd get ready with a proposed payment plan in the interim.

1. No

2.Call them. If you offer to pay £300 and tell them an ongoing amount that you can afford, they should be fine with that. If you are moving in the right direction, at a reasonable speed, it isn't worth them stepping up collection efforts for such a small amount.

I don't think you have a strong case for a "reasonable excuse". You are 7 months late, you clearly haven't done all you reasonable could to get it done sooner even if you had other stuff going on. But obviously "reasonable" is open to interpretation and apparently judges have been taking a more relaxed view on it recently.