Payment on account

[RickG]

Does anyone know how to make a payment on account to reduce interest charges accumulating on tax owed on loans?

And can the payment be refunded (or part refunded) if subsequently you get a Time To Pay agreement?

[FormerContractor]

Does anyone know how to make a payment on account to reduce interest charges accumulating on tax owed on loans?

And can the payment be refunded (or part refunded) if subsequently you get a Time To Pay agreement?

You are thinking of Certificates of Tax Deposit, and these were discontinued by HMRC last year.

No reason was provided, but I am presuming that they were discontinued because HMRC realized they were losing a lot of interest on their drawn out inquiries. I really do hope that the TSC look into this as its completely out of order.

[RickG]

I did read about Certificates of Tax Deposit, and they seemed like the perfect answer to my question. But as you said, discontinued.

However, I was also told that you can make payments on account (via Self Assessment?) if you believe you owe tax, and these would offset your liability, to stop interest accruing. I was wondering if anyone had done this - and if so, what SA reference would one use?

I'll try and ring HMRC at some point today to ask.

[FormerContractor]

I did read about Certificates of Tax Deposit, and they seemed like the perfect answer to my question. But as you said, discontinued.

However, I was also told that you can make payments on account (via Self Assessment?) if you believe you owe tax, and these would offset your liability, to stop interest accruing. I was wondering if anyone had done this - and if so, what SA reference would one use?

I'll try and ring HMRC at some point today to ask.

RickG

Two key points to ask
1) Find out is how easy is it for you to get your money back. Its a lot of capital to have tied up for years and if you decide you need to get your hands on your capital for a more urgent need, can you?

2) Check whether you get any interest for money sitting on account? I seriously doubt it.

You might be better putting the sum into a decent investment. I fear once HMRC get your money you will NEVER see it again, even if they are proven wrong.

Also, I would strongly recommend you get in touch with one of the tax advisors that frequent this forum.

[phil@pmtc]

RickG

Two key points to ask
1) Find out is how easy is it for you to get your money back. Its a lot of capital to have tied up for years and if you decide you need to get your hands on your capital for a more urgent need, can you?

2) Check whether you get any interest for money sitting on account? I seriously doubt it.

You might be better putting the sum into a decent investment. I fear once HMRC get your money you will NEVER see it again, even if they are proven wrong.

Also, I would strongly recommend you get in touch with one of the tax advisors that frequent this forum.

Good advice, id suggest any payment made will be impossible to get back until HMRC accept any liabilities are paid in full