Anyone do their tax return today?

[Freddie Goodwin.]

It is said that some have taken advantage of the 'time to pay' system. You can ask for up to 12 months to spread payments but the HMRC interest rate is quite low so, provided you have the money and can put it aside in an account with a better interest rate, you can earn a few more pence.

Not sure how true, or profitable this is though.

 

[Chicken Runner61]

It is said that some have taken advantage of the 'time to pay' system. You can ask for up to 12 months to spread payments but the HMRC interest rate is quite low so, provided you have the money and can put it aside in an account with a better interest rate, you can earn a few more pence.

Not sure how true, or profitable this is though.

You only get chased if you fall behind and strangely enough they leave the older payments and chase the latest ones. If the amount is a lot they come down hard after a year but if its a relatively small amount then they are not so hot. I think they are being extra lenient as the economy is bad but would hate to be in anyones shoes when they eventually go for it.

I don't understand how football clubs get away with owing so much but I suppose the amounts players earn come to a lot in a short time.

 

[Gazwag]

It would be much cheaper than overdraft or loan interest but you won't get a bank paying you more interest at the moment than you will be charged, I think its 3%.

 

[Vic's Stick]

I did !

 

[Chicken Runner61]

It would be much cheaper than overdraft or loan interest but you won't get a bank paying you more interest at the moment than you will be charged, I think its 3%.

Yes but most businesses use an overdraft and paying 3% interest to HMG is cheaper than paying 8% to a bank.

Any business that is doing well and does not use an overdraft will hang on to the PAYE and earn whatever they can until they have to pay it

 

[Freddie Goodwin.]

You only get chased if you fall behind and strangely enough they leave the older payments and chase the latest ones. If the amount is a lot they come down hard after a year but if its a relatively small amount then they are not so hot. I think they are being extra lenient as the economy is bad but would hate to be in anyones shoes when they eventually go for it.

That has more to do with the disposal of staff. HMRC think everything can be done cetrally and by computers thus they will send out demands and threats by the thousands but will actually do very little painfull action on debts below a few thousand. getting some sort of arrangement also keeps you under the radar.

As for old/new debts, debts accrue interest but any payments go against tax 1st, which is advantageous to the tax payer. This does mean that, for an old debt, the tax may have been cleared but the interest amount (which does not accrue further interest) will not be cleared until any later tax/penalties have been paid, thus a statement appears to show some old debts.