Late paying tax. How much trouble am I in?

[Scrag Meister]

I don't know what arrangements you currently have but there are accountants who will provide you with calculations so that you can monitor your tax position as you go along which means that you won't have a shock at the end of the financial year when the bill becomes due.

Yes, its called having a savings account to accrue your tax in as you pay yourself the net!!

[LisaContractorUmbrella]

I've been contracting for a couple years off and on, more off than on, and I am currently broke. I have had a letter requiring payment of my tax for 09-10, which was due on March 1st, it's around £1300, but I don't have anything I can spare at all, and likely won't for a few weeks.

So, I know they will add interest, and fine me for late payment, but does anyone have any idea how long I can put off paying before they start to get serious with me. I did arrange last years tax on instalments, they were fine when I did that, but I had a lump sum to give them to start that. I'd like to do the same again, but don't know when I will have a lump sum to give them.

Anyone have experience of a similar situation.

I don't know what arrangements you currently have but there are accountants who will provide you with calculations so that you can monitor your tax position as you go along which means that you won't have a shock at the end of the financial year when the bill becomes due.

[northernladuk]

I believe the tax people are pretty easy to work with and have many options available. At the end of the day you just pay interest (which normally they don't apply anyway but I believe in the current climate I wouldn't bank on this). I was of the understanding it was the VAT people you have to keep happy or stop using soap.

[TheFaQQer]

Ring them and see what they say - there is a late payment scheme where if you deal with them you get a marginally better deal than just not paying, IIRC.

[Clare@InTouch]

The best thing you can do is call them and let them know, they are more sympathetic if you keep them informed than if you ignore them.

[zangzung]

I've been contracting for a couple years off and on, more off than on, and I am currently broke. I have had a letter requiring payment of my tax for 09-10, which was due on March 1st, it's around £1300, but I don't have anything I can spare at all, and likely won't for a few weeks.

So, I know they will add interest, and fine me for late payment, but does anyone have any idea how long I can put off paying before they start to get serious with me. I did arrange last years tax on instalments, they were fine when I did that, but I had a lump sum to give them to start that. I'd like to do the same again, but don't know when I will have a lump sum to give them.

Anyone have experience of a similar situation.