Reply to: Dividend tax >> All Ltd Co contractors to payment on account....

[TheFaQQer]

It's going to be quarterly returns soon - with payment of taxes for that quarter, they don't want to give credit where it's due

Quarterly filing has been announced for some time now. Quarterly payment hasn't been announced yet.

[SueEllen]

It's going to be quarterly returns soon - with payment of taxes for that quarter, they don't want to give credit where it's due

That will cause a massive feck up like with child tax credits.

[AtW]

It's going to be quarterly returns soon - with payment of taxes for that quarter, they don't want to give credit where it's due

[SueEllen]

Thanks for confirming.

Pretty big win for hmrc then abolishing the dividend tax credit. Not only do they get greater tax receipts they also get them early.

Yes and from there just one small step to do away with this irritating take home pay altogether and enslave they masses into full blooded communism

Tories are no way left wing let alone Communist.

The problem for them, and all future UK governments, is the tax system was based on the majority of people being on PAYE in stable jobs. When you have too many high earners self-employed using dividends to pay themselves, plus too many low and middle income tax payers also on unstable temporary contracts then the total tax take is too small.

If the government wants to be harsh they could do what other European countries do and tax people the same no matter how they gain their income.

[MrC]

Thanks for confirming.

Pretty big win for hmrc then abolishing the dividend tax credit. Not only do they get greater tax receipts they also get them early.

Just wait till you see the end game...

HMRC want all money to be paid through them. They will automatically deduct their cash and give you the rest.

Trust them much?

Yes and from there just one small step to do away with this irritating take home pay altogether and enslave they masses into full blooded communism

[CoolCat]

Getting the £2k they owed me this year was like getting blood out of a stone.

First they issued a cheque which they promptly blocked, then they were doing a transfer into my account (that didn't happen) then I got another cheque. 3 months it took.

Kafkaesque is the word that springs to mind.

Yes

Getting any money due from HMRC can be very time consuming, both in the length of wait, and the amount of energy you have to put into chasing them and complaining. Several years I have had to go through the full complaints process to get the money.

[AtW]

I thought he was always drunk unless driving

Not this month - fecking stopktober

[bobspud]

Just wait till you see the end game...

HMRC want all money to be paid through them. They will automatically deduct their cash and give you the rest.

Trust them much?

[SueEllen]

Go home AtW, you’re drunk.

I thought he was always drunk unless driving

[TheCyclingProgrammer]

Go home AtW, you’re drunk.

[AtW]

Also, if tax year not over, how the fook one supposed to know full earnings if there were one offs?

At the very least prepayment should have covered ONLY time before submission

[AtW]

Real problems are -

1. You only learn about payment on account when it suddenly jumps on you, most likely couple of weeks before due date

2. Then you get another shock next year when tax calc ignores prepaid money FOR THAT FOCKING TAX YEAR - it's not a generic payment on account, but a payment for THAT SPECIFIC YEAR

Finally, I was right in my statement that those who fill SA pay most of income tax, respect the taxpayers!

[TheCyclingProgrammer]

I'd expect supplier to have user friendly system that would show overall balance that factors in payment on account, with words such as - NOTHING TO PAY, THANK YOU.

Sure, HMRCs systems could be better and it doesn’t help that there’s a mix of legacy and newer systems that aren’t all fully connected up in real time.

But if you just think of your tax calculation as your invoice then all you have to do is log on a few days later once your statement of account has been updated to see exactly what your account balance is. It’s not exactly rocket science.

Yes it would be better if your statement of account updated automatically and this was shown to you after submitting but this IS HMRC we are talking about.

[TheCyclingProgrammer]

I’m not sure it necessarily pans out the way you think - loads of lower earning small business owners and sole traders/people with modest rental income are on self assessment. Lots of rich people on massive salaries that are paid by PAYE. But even if you’re right...

I’m still not sure why that means people who pay more tax should get massive credit terms. Surely if the majority of tax is coming via self assessment then it’s better for it to get collected sooner rather than later?

As I said, having to make two payments - one 10 months into the tax year and one 4 months after it’s finished - still gives you much more flexibility in terms of cash flow than anyone on PAYE.

[AtW]

This is pretty standard accounting practice. If you had £100 on account with a supplier and purchased something for £100, you wouldn’t owe any money because the amount already paid on account would cover it but you’d still expect an invoice for £100 wouldn’t you?

I'd expect supplier to have user friendly system that would show overall balance that factors in payment on account, with words such as - NOTHING TO PAY, THANK YOU.