I'm self-employed in the UK - first tax bill due at the end of this month. What happens if you can't pay it all? Do you get fined, or do you only pay interest on what you owe? I'm only a couple of hundred quid short, so I might just take it out of my savings, but I'm curious as to what happens.
2007-01-23 08:02:10 · 6 answers · asked by thevinternet 2 in Business & Finance ➔ Taxes ➔ United Kingdom
Pay as much as you can when you file your return. After it has been processed they will send a bill for the rest. You will be charged interest on the outstanding amount but if your only talking a few hundred pounds this will be very small (a few quid at most)
You only get fined if you fail to file your return or pay nothing.
If in doubt call your local office and talk it through - the golden rule is get in touch before there is a problem and they will be happy to advise. It's only if you give them the run around things get tricky.
2007-01-23 08:13:11 · answer #1 · answered by The Wandering Blade 4 · 0⤊ 0⤋
You get charged interest at a reasonable rate for the first month and then penalty interest after that which can amount to a lot.I would advise you to pay the full bill , or if you can't then speak to the Inland Revenue and they will probably accept payment by instalments but interest and penalties will still apply
2007-01-23 16:13:53 · answer #2 · answered by little weed 6 · 0⤊ 0⤋
Don't fret too much. Pay as much as you can and let the tax man know when you will pay the remainder. You will be charged interest but it's cheaper then taking out a loan. Just make sure you keep to your word because if you leave it too long you will be penalised £100
2007-01-23 16:13:09 · answer #3 · answered by daz r 1 · 0⤊ 0⤋
hi, i work at HMRC and if you don't pay the tax bill by the end of the month then the outstanding amount incurs daily interest. if it is then not paid by a following date surcharges will then be introduced.
just to let you know we have an option called time to pay if you would have difficulty paying the sum in one go you can come to an agreement with our accounts office to pay in instalments.
2007-01-23 16:55:10 · answer #4 · answered by crazy_virgo_girl 1 · 0⤊ 0⤋
Can you ask for an extension? I think you would have to make arrangements with them to pay off what you can't pay and yes there would be interest. If you ask for an extension there may be interest as well.
2007-01-23 16:10:10 · answer #5 · answered by gymfreak 5 · 0⤊ 0⤋
You are fined revolving interest that keeps doubling and tripling squared each and every day. Pay it. The government is in need of our money and they don't play fair.
2007-01-23 18:16:38 · answer #6 · answered by Anonymous · 0⤊ 0⤋