[Sir Squeaky]

I worked out my tax bill and submitted it, and it was a shocker (for me anyway).

No chance of writing a cheque, so I phone up to sort out a payment plan.

It's been split into 3 months of £300-odd a month.
Also on July 31st they want another £350.

That's around £1200, and my tax bill was only £675.
I'm never going to be able to spare £75 a week, every week for 6 months.

Last year it was £450-odd, I wrote a cheque, they send me a receipt saying nothing owing.
Now she says there's extra to pay from last time, yet I never had any correspondence telling me so.
They can't just add £300 to my bill, then make up another mystery £300 too...

Should I go to Citizens Advice about these conning b'stards?

Rog. (who should have a weight off his shoulders, not more bloody stress )

[crystal.clear]

your lucky i just paid my tax bill over £5000

[Tosh]

Rog,

Don't worry about it too much.  The taxman isn't as bad as some other financial firms I could name.

I've been through the 'haggling' stage with the taxman, and failed to keep to my end of the agreement.  In the end, I missed payments and then just paid them what I could till my balance was cleared.  They don't hassle you.

Just pay them what you can, ensuring that you pay them enough to clear your tax balance prior to getting your next tax bill.

You may get a bit of interest added, but they don't go sending the balifs round.

You've got nothing to worry about.

If I were you, I'd  pay 'em 150 quid per month, at least, every month, till you've cleared your balance.

[chosker]

We had problems like this once or twice. give them a call and ask them to send you a breakdown of exactly why you owe that much money.

They do want payment at the time they request it, and although they will arrange payment plans they charge more for this.

Their argument is... well, you know what month your tax returns are due so you should be prepared for it. Only advice I can give is to have a seperate bank account and siphon off x amount a month so that when your tax bill comes its all there ready and waiting to be paid over to them. Any extra money you have in there can pay for your holiday  

If you have a receipt saying nothing else owed then confront them about it and send them a copy / fax of the receipt. There's not a lot they can say to hard evidence like that

Our tax bills run into the thousands but we've learned over the years to set aside money each month...

Good luck!

[Pj]

Rog, the Tax office base the balance you owe on the accounts you submitted.  As long as you keep your records in good order it shouldn't be too hard for you to work out what you should have paid.  If you think youv'e been over taxed you can appeal, or re-submit, they can rebate you next year. 

[KarlJones]

Should I go to Citizens Advice about these conning b'stards?

Yes.  And I will tell you that not because you might get some off but because you might get a better explaination.

Remember that your paying the balance of the year 2005/2006 and also making a first payment on year 2006/2007.  This can catch you with your pants down,  because if you made a big purchase in the year 2005/2006 prior to January it would lower your first payment on account compared to the final bill.

Now this is a wierd thing. 
My Dad always files his tax returns at the end of May.  This is because if you file them before the end of September then the inland revenue do the calculations for you.  This then usually flies backwards and forwards, lots of nice conversations on the phone ect, basically no one seems to file anything with them in May except my Dad so things move quite nicely and any explainations on both parts are handled well.  By the time September comes his is already sorted.

It gives him plenty of time to make arangements for any nasty supprises.

[marc al]

  I always have mine filled out and returned within a week of receiving the forms.

  Why wait till the last minute, if you keep your books upto date it is very easy to just transfer the figures over.

   I was told what i had to pay by mid September, that way if you are looking like you will come up short you have alot more time to sort it out.

   Although I believe the tax man is always honest and will not take a penny more than they are supposed to, it is best not to get on the wrong side of them as this may well flag you up in the future as a pain in the arse and time for a bit of an investigation.

[MNWC]

Just paid half of mine tonight

Tried to ring their helpline but been engaged for the last two days !!

so paid half my commitment today, sent them a letter explaining
my payment plan
 
x amount for feb

x amount for march

Sure ill have to pay a little interest (was about 11 quid last year)

They seem happy with that

Marcus

[williamx]

You could borrow a wfp system, you should make that amount within 2 weeks.

[niceandclean]

Should I go to Citizens Advice about these conning b'stards?

Now this is a wierd thing. 
My Dad always files his tax returns at the end of May.  This is because if you file them before the end of September then the inland revenue do the calculations for you.  This then usually flies backwards and forwards, lots of nice conversations on the phone ect, basically no one seems to file anything with them in May except my Dad so things move quite nicely and any explainations on both parts are handled well.  By the time September comes his is already sorted.

It gives him plenty of time to make arangements for any nasty supprises.

Thats what i do!!

[DaveWilkinson]

The tax man gets a bad reputation but on the whole as long as you keep him informed he will normally be ok.

I was in a partership a few years ago and we had differences that couldnt be resolved. Anyway afterwards I couldnt get access to the accounts and couldnt file a return to the tax man, I explained this and there responce was they would estimate how much I owed and had to pay that, the only problem with this was they could re calculate at anytime they wanted and as many times as they wanted and send me another bill until I submitted my accounts for that year.

    I couldnt file accounts i didnt have and I couldnt guestimate as this was possible tax fraud......checkmate.

The only way out of it was to let the IR bankrupt me and start a new tax record, this cost 12k IR bill and by the time the receiver had piled his charges on the bill was estimated at 50k. I negotiated with the receiver but it still cost me 32.5k to settle plus solicitors costs.

Moral of the story is no matter what happens keep your accounts upto date and in a safe place.

Dave

[Jon T.C.]

I worked out my tax bill and submitted it, and it was a shocker (for me anyway).

No chance of writing a cheque, so I phone up to sort out a payment plan.

It's been split into 3 months of £300-odd a month.
Also on July 31st they want another £350.

That's around £1200, and my tax bill was only £675.
I'm never going to be able to spare £75 a week, every week for 6 months.

Last year it was £450-odd, I wrote a cheque, they send me a receipt saying nothing owing.
Now she says there's extra to pay from last time, yet I never had any correspondence telling me so.
They can't just add £300 to my bill, then make up another mystery £300 too...

Should I go to Citizens Advice about these conning b'stards?

Rog. (who should have a weight off his shoulders, not more bloody stress )


Rog,

I your liabilty is over £500, you pay half that amount again in lieu of next year ( £250).
So Jan 31, you are liable £750. Then July 31 another £250. That then means that £500 is already paid towards the following year. That is exactly what I had to do this year.

Regards Jon

[KarlJones]

Jon, is that just the liability on the final payment?  What I mean is if you over pay in July do you miss this trap?

[Paul Coleman]

I worked out my tax bill and submitted it, and it was a shocker (for me anyway).

No chance of writing a cheque, so I phone up to sort out a payment plan.

It's been split into 3 months of £300-odd a month.
Also on July 31st they want another £350.

That's around £1200, and my tax bill was only £675.
I'm never going to be able to spare £75 a week, every week for 6 months.

Last year it was £450-odd, I wrote a cheque, they send me a receipt saying nothing owing.
Now she says there's extra to pay from last time, yet I never had any correspondence telling me so.
They can't just add £300 to my bill, then make up another mystery £300 too...

Should I go to Citizens Advice about these conning b'stards?

Rog. (who should have a weight off his shoulders, not more bloody stress )

It sounds like you have fallen foul of the "payment on account" which hit me quite hard this time too.  This can be particularly nasty when you had a poor year the previous year and a much better year more recently.  I had a very bad year two or three years back due to a severe health problem.  When that was resolved, I then had a much better year.  The payment on account can work OK when you go from an OK year to a bad year.  Indeed, last January, I didn't owe them anything.  This January, I've just had to fork out £2,700+ .  My payment "on account" was actually larger than the first half of my tax bill.  It would probably be more helpful if the IR were to spread the payment on account over the two payment dates in January and July.  However, if you are going from an OK year into a very bad year, this could cause a problem.
Squeaky.  I think that the IR charge a 5% surcharge on any money not paid by February 28th.  You might be better off if you apply for a credit card with some credit card cheques and a special offer.  There are plenty out there still.  You could get interest free for 6 - 12 months though there is often a 2 - 3% charge on using those cheques.  If you are disciplined with making the repayments to the card, you could save yourself paying the IR the 5% surcharge from March 1st and save yourself paying them the interest.  IR interest rates are reasonable but getting a card (and CC cheques) on a special offer should be cheaper.

[Sunshine Cleaning]

Why not get an accountant, they will save you more than they cost, submit your accounts VERY early as suggested and do a bit more work.

[Sir Squeaky]

Why not get an accountant, they will save you more than they cost, submit your accounts VERY early as suggested and do a bit more work.

I stopped using accountants because they weren't worth it actually.
Might be a help for a 3 man £75K business, but for a lone ranger with a simple job?
Nah!

[Jon T.C.]

Jon, is that just the liability on the final payment?  What I mean is if you over pay in July do you miss this trap?

No. It all depends if your liability to pay that particular year is over £500.

[KarlJones]

thanks Jon.

I worry when I see statements about accountants saving more than they cost.  Sure they may spot the odd thing you have not realised you can claim but they cost a fair ol whack.

[Paul Coleman]

thanks Jon.

I worry when I see statements about accountants saving more than they cost.  Sure they may spot the odd thing you have not realised you can claim but they cost a fair ol whack.

I probably break even on my accountant but it's the aggravation he saves me that is what I pay for.
Although I could sort out basic accounts and returns form directly with the IR, I would have to spend time going to their office for some of it - particularly issues on capital items.  On top of that, I have occasionally had letters from the IR where I needed a translator.  There are a few things he has put through that I wasn't aware of.  Also, I rented my flat out for a few years some while back and he was a great help with that (for a higher fee mind).
My bill for his most recent year was £224.00 - which is tax deductible.  To have someone cost me the equivalent of about £150 p.a. (after tax and lesser NI bill), and save me hassle is worth it to me.  I can earn more than that on a decent day.

[Sunshine Cleaning]

Why not get an accountant, they will save you more than they cost, submit your accounts VERY early as suggested and do a bit more work.

I stopped using accountants because they weren't worth it actually.
Might be a help for a 3 man £75K business, but for a lone ranger with a simple job?
Nah!

Your choice of course, but why not submit your accounts earlier so that you know how much tax you have to pay well in advance.
If you know in July how much , then you have 6 months to save up.

I cant understand why anybody leaves it till late January to work out how much Tax they will pay a week later, especially someone who has no money.