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- What to do if you have problems paying your self-assessment tax to HMRC by 31st January.

Published by Guy Baragwanath in Latest Tax News · 19/1/2012 15:23:10
Tags: selfassessmenttaxreturnHRMCproblemspayingtaxBPSS

Have you completed your 2010/11 tax return and found that you cannot afford to pay all the tax that you are due to pay to HMRC by the 31st January 2012?

If the answer is "yes", DON'T PANIC!

HMRC does expect everyone to be able to pay their tax in full and on time, but they do realise that there are circumstances where this is not always the case.

The MOST IMPORTANT thing is contact HMRC as soon as possible to see if they will allow you more time to pay.

Follow these steps to see if HMRC will allow you more time to pay your tax due:
STEP 1: Work out how much tax you can afford to pay by 31st January.
STEP 2: Work out how long it will take you to pay the balance of the tax due.
Contact HMRC's Business Payment Support Service Helpline on 0845 302 1435.
This is the department that may be able to allow you time to pay your tax.

Information that you will need:
- your tax reference number (a 10 digit number also known as your UTR)
- your name and/or the name of your business
- yours/the business address including the postcode
- a contact telephone number
- details of the tax that you believe you will have difficulty in paying

Additional questions HMRC will ask you:
- why you are unable to pay in full and on time
- what you have done to try and raise the money to pay your debt
- how much you can pay immediately
- how long you think you will need to pay the rest
- if you are receiving any repayments from HMRC

HMRC will ask you about your income and expenditure, your assets and the changes you are making so that you can return to making payments on time.

If HMRC allow you more time to pay - you MUST ensure that you pay the agreed amounts on time, otherwise HMRC will cancel the arrangement and take legal action to recover the outstanding amount.

If you do not contact HMRC, they will charge interest for late payments as well as send demand letters and charge additional interest and surcharges for late payment.
Further failure to not pay could result in your debt being passed onto a debt collection company.

You will still be charged interest on any late payments, but as long as you make the required payments on time, no additional surcharges will be charged.

If HMRC does not allow you a time to pay arrangement, there is no right of appeal against this decision, but HMRC will explain why they have not agreed a time to pay arrangement, and what will happen next.

More information about the Business Payment Support Service can be found at the following website:

C & GB Associates - Accountants
8-10 Millgate, Thirsk, North Yorkshire, YO7 1AA
Tel & Fax: 01845 525502

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