Help payment on account

[MankyManning]

I haven't been contracting long and made a mistake in my first year, paying a reasonable salary and taking dividends on top. I realise that now most of these dividends were in the %40 bracket as it were and overall I ended up owing a fair amount in personal taxation. That in itself isn't a problem as I put some away to cover it.
However they now want another 50% for the first payment on account payment at the same time!
I can't really afford this as well and now I have decided to pay myself a much lower salary and take dividends then my overall income on paper will be much less too.

Can I just ask for them to be reduced?

[Gonzo]

Before anyone else says it, have you asked your Accountant?

It is possible to do it, what you want is form SA303
http://search2.hmrc.gov.uk/kbroker/h...jsp?formId=880

But you should be very careful not to get the amounts wrong because if you apply to reduce the payments on account and you do end up owing the tax afterall they will charge you interest and/or penalties.

[Gonzo]

Before anyone else says it, have you asked your Accountant?

Hold on a minute!

Thinking about it, if your accountant has let you pay yourself PAYE salary up to the higher rate tax band then I would look for another one if I were you.

[pmeswani]

Hold on a minute!

Thinking about it, if your accountant has let you pay yourself PAYE salary up to the higher rate tax band then I would look for another one if I were you.

What makes you think the OP has an accountant? What makes you think the OP isn't a sockpuppet?