Paying your Income Tax Bill

HMRC will no longer accept payments by personal credit card after 12 January 2018.

The reason of the change is that from 13 January, the EU Payment Services Directive 2 prohibits merchants (including HMRC) from recharging associated fees back to customers. HMRC will not absorb the cost of credit card fees as this would be a cost to the public purse.

Payments by debit card or corporate credit card will continue to be accepted.

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HMRC reveals worst SA penalty excuses

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From hungry rodents to five-year arguments, HMRC has published some colourful excuses that were all used in unsuccessful appeals against penalties for late returns.

“My tax papers were left in the shed and a rat ate them,” read the one excuse. Unsurprisingly, the taxman didn’t bite. In another fanciful excuse, a taxpayer said: “I had an argument with my wife and went to Italy for five years”.

But, in light of recent flooding, there are many taxpayers and accountants who have reasonable excuses for late filing. HMRC has conceded that “those affected by flooding at their premises, or their agents’ premises, will not be asked to pay a penalty if their return is submitted without unreasonable delay”.

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Annual Tax Statements

HMRC

30 million taxpayers receive statements illustrating how their income tax and NIC was spent by government

Q&Q Comment: if you have any queries about this new statement, please contact your accountant. It’s not a demand for payment, or a statement of your current position. It shows the money that’s been deducted from you in tax over the last tax year, and how it’s been used by the Government. It may not include your most recent payments.

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From HMRC:

30 million tax summaries start arriving from today (Tuesday 3 November).

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HOW much tax, by WHEN?!

mug2 Have you has a tax demand that’s startled / shocked / disturbed you – and HMRC are asking for it all by Jan 31?

CALL THEM if payment’s not going to be practicable for you. One of the worst sins I’ve found from their point of view is not letting them know what’s going on. They’ll still demand the money, no question about that! But don’t put the brown envelope in a drawer and hope they’ll forget you. They WON’T, and when they do eventually reconnect with you, they’ll charge you for Denial.

My other recommendation is that ANY payment is better than NO payment. If you can part-pay your bill, do that as soon as you can, then contact them to discuss plans for the balance.

And if you think it’s all wrong anyway? Check in with your accountant – or contact me if you need one! I confess I may not now have time to check everything through for you and get back to HMRC in time for the January 31 payment deadline. But we can certainly check the past returns ASAP, and look at a strategy for future.

Choosing a date for your accounting year end

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Chartered certified accountant Raphael Coman of Coman & Co provides advice about choosing an accounting year-end date for your business

The choice of date for your accounting year-end is entirely up to you as a business owner, but there are many factors to consider.

The date you choose will affect when you pay tax on your profits. While aligning your accounting date with the tax year may be the simplest option, there are implications for a growing business that you should consider.

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Paid too much or too little tax?

HMRC

If you’ve overpaid or underpaid your tax during the tax year, we’ll notify you between now and October 2015. It’s called a P800 tax calculation.

This year, if you’ve paid too much or too little tax, we’re making the process as easy as possible for you.

We will tell you how we’re collecting any underpayment, or we’ll give you a cheque if we owe you money.

There is no need to contact us unless you think the details we’ve used are wrong.

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