Guest Blog by Lisa Tabor, from Tax Debts Help and Advice
31st July is looming, possibly one of the most dreaded days in a self-employed person’s calendar.
Payments on account are made twice a year by self-employed people – 31st January & 31st July.
These were originally designed as a way of helping those that are self-employed spread their tax bills. The problem is that for some people the payments on account are often resulting in financial hardship, particularly for those already having difficulty making payments to HMRC.
As the payment on account is calculated by looking at your previous year’s tax bill, it can cause untold issues when your current income has fluctuated. Record keeping is a key element in maintaining your tax records & more importantly it will help you keep an eye on upcoming bills – no nasty surprises!
So what’s next if you can’t make the payment on account to HMRC?
If you don’t think you are going to be able to make this payment it is important to seek advice from external agents & to contact HMRC as a matter of urgency. The sooner you discuss options with them and get advice, the sooner you may be able to reach a payment instalment agreement.
HMRC will consider ‘payment proposals’ but they are given on a concessionary basis and the process is not always straight forward.
HMRC has become more aggressive in its pursuit of unpaid tax bills and legal action is starting earlier & faster nowadays. It’s important to act quickly.
Don’t ignore it – Seek Help
It is vital that you do not ignore a tax bill. Doing so can only make the problem worse, interest & penalties can apply & will start to mount up quickly.
In some instances self-employed people find they just cannot come to an arrangement with HMRC or they cannot meet the payment/re-payment time criteria HMRC are looking for & the bill begins to escalate quickly – There is help out there!
Tax Debts Help & Advice is a company that has been set up to help those that cannot pay tax bills in full & on time. With over a decades experience we have helped our client’s come to acceptable, affordable solutions with HMRC. Contact us today if you are struggling with a tax bill that you cannot pay.