Problems with cash-flow and tax payments?
HMRC may be prepared to help. It has recently issued guidance on the implementation of managed payment plans (plans). These plans allow tax liabilities to be paid by equal monthly instalments over a period of up to 12 months spaced equally, either side of the normal due date(s).
The plans will provide protection from interest and penalties. They are available for income tax, capital gains tax payable and corporation tax. However, large companies are not eligible.
Plans are voluntary. You have to send a proposal to pay to HMRC who will accept it provided certain conditions are met. These currently include:
- you must have filed your return for the year
- you must have paid all previous tax due or have set up a separate arrangement to pay
- payments must be made, by Direct Debit or Standing Order, by equal monthly instalments on the fifteenth day of each month, spread equally either side of the due date.
This may not be a perfect system and it certainly needs planning in advance which makes it of little use for this July. But if cash is tight this may help come next January, provided you take action now.
Comment on this blog in the space provided below, or visit my profile for details of how to contact me.
Cathy Corns is a Tax partner at Mercer & Hole.
Date: 30th June, 2009
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