Can't pay? Won't pay?
H M Revenue & Customs is again toughening its stance against late payers.
With effect from 3 August 2015 it will only agree to time to pay arrangements if the taxpayer agrees to a Direct Debit arrangement.
The effective date of 3 August means that the new arrangements will affect taxpayers who are unable to make the payment on account due on 31 July.
If you are unable to pay your tax liability – whether it be Corporation Tax, Self Assessment or VAT – it is important to address the issue as soon as possible. In robinson+co’s experience H M Revenue are likely to be more sympathetic the earlier you contact them about payment difficulties – although that may not be too sympathetic.
“We can – and do - contact HMRC on behalf of our clients in these circumstances,” says Brett Bennett, robinson+co’s Tax Manager, “but we do need some information from you before we can do so. The HMRC agent will ask us:
- the amount of the tax bill you’re finding it difficult to pay and the reasons why
- what you’ve done to try to get the money to pay the bill
- how much you can pay immediately and how long you may need to pay the rest
- your income and expenditure
- your assets, like savings and investments
- what you’re doing to get your tax payments back in order”
HMRC’s website goes on to say that “HMRC will decide whether you should be able to pay immediately - or if you can’t, whether you will be able to get your payments back on track with more time.” This is more than a little presumptive of HMRC but it is indicative of the attitude you can expect!
“Please contact us as soon as you anticipate a problem,” finishes Brett. “The sooner you contact us the more we can help you.”
As ever the team can be contacted at any of our offices:
Whitehaven 01946 692423
Gosforth 019467 25808
Workington 01900 603623