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How to pay large tax bill?

Paying large self-assessment tax bill

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Hi all,

My client has a large tax bill on their self-assessment due to capital gains (c. £1m). Is there a different way to pay their tax due to the large sum of money involved? Can't see anything on HMRC and the HMRC helplines have been as helpful as usual when you finally manage to get through.

Thanks

Replies (19)

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RLI
By lionofludesch
03rd Aug 2021 17:24

I don't think there's anything per se.

You'll be stuck with the client ringing HMRC up and asking for time to pay.

Try not to get involved with those sort of negotiations. HMRC are bound to ask for information about the client's personal circumstances which you don't have.

It's a lot of money. What happened to the sale proceeds ?

Thanks (1)
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By David Ex
03rd Aug 2021 17:31

When you say "a different way to pay", do you mean debit card, credit card, bank transfer?

What issues are you/the client facing?

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Replying to David Ex:
RLI
By lionofludesch
03rd Aug 2021 18:07

David Ex wrote:

When you say "a different way to pay", do you mean debit card, credit card, bank transfer?

What issues are you/the client facing?

Ah - right .... we're not looking for credit, then.

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Replying to lionofludesch:
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By Emmamay106
04th Aug 2021 11:23

Sorry should have been clearer- they have no problems with paying the bill but just want to make sure it is done correctly as it is a large sum of money!

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By Leywood
03rd Aug 2021 17:54

Get your clients bank involved as that is where its likely to fall over, no matter the type of payment. Faster payments will work for 1/4 mill so might need to be a chaps payment (which are done for many more millions than that!)

Thanks (2)
By ireallyshouldknowthisbut
03rd Aug 2021 18:05

Paper cheque would be the simplest.
Or speak to your bank.
Or split it up.

Thanks (2)
Replying to ireallyshouldknowthisbut:
By petersaxton
03rd Aug 2021 21:57

I had a large payment to make last year. I just paid bank transfers of one per day for four days.

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By Tax Dragon
03rd Aug 2021 19:08

Is the issue with the recipient?

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By Calculatorboy
03rd Aug 2021 23:13

He should have thought about it beforehand..no sympathy..pay the damn tax you owe.

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Replying to Calculatorboy:
Quack
By Constantly Confused
04th Aug 2021 10:11

Calculatorboy wrote:

He should have thought about it beforehand..no sympathy..pay the damn tax you owe.

Where has the OP said their client doesn't intend to pay it?

Thanks (3)
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By DKB-Sheffield
04th Aug 2021 01:25

I suppose it depends on the deadline. If it's a 2021/22 return, you should be fine to spread the payments by "normal" bank payment. If it's a "30-day" gain (which I guess it isn't given the reference to "Self Assessment") and if the deadline falls within the next 4 or 5 working days, you may have to pay by CHAPS.

Thanks (1)
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By more rain
04th Aug 2021 09:12

Same as always, bank transfer to HMRC.

If the bank will not allow it, ask them to contact the bank and make a CHAPS transfer.

I'm sure they can swallow the £25 CHAPS fee given the tax on the gain.

Thanks (1)
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By bernard michael
04th Aug 2021 09:45

You/the client could try try the "time to pay section"
The phone number used to be 0300 200 3840
Has the client spent the money or just not wanting to pay ??

Thanks (0)
Replying to bernard michael:
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By Emmamay106
04th Aug 2021 11:25

Thanks- they have no problem paying but just want to know that the money will get to the right place as it is a large sum of money I wondered if there was a special way to pay this but sounds like it is just a CHAPS payment

Thanks (0)
paddle steamer
By DJKL
04th Aug 2021 10:04

When we have to pay larger tax bills I sort them via direct instruction with our bank.

Splitting payments can be a pain, I had one for circa £80k two years back paid in £10k tranches, two went missing in HMRC and it took a year for the funds to be found.

I would also ignore HMRC's issue with cheques, I send in a cheque most years for one of our companies (it does not have online banking) and whilst they send me letters saying not to do this they do cash the cheques sent.

Thanks (1)
Quack
By Constantly Confused
04th Aug 2021 10:13

We had a client who needed to make a large (though not as large as yours) payment - they went into their bank (lucky them, still having a branch) and made them aware of what would be happening, then split it over several days by transfers.

The banks can be so random about payments, it's best to warn them about oddities.

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By nick farrow
04th Aug 2021 11:02

i would definitely go in the branch to make that payment armed with loads of identity documents

Thanks (2)
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By NotAnAccountant2
04th Aug 2021 13:04

Probably varies by bank but when I had to make a 1/4m transfer to my solicitors (ten years ago now) the bank required me to put the request in writing. (IIRC I wrote to them and then they called me back to setup the CHAPS) The maximum CHAPS payment they would do over the phone with me calling them unannounced was 100K.

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