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Payment of tax through paye code

Payment of tax through paye code

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We have a client with a circe £2k tax bill, he doesn't want to pay this at the end of January, he's missed the 30th December to have it put into his 2019/20 tax code and to make matters worse the HMRC have changed the current years tax code to collect the estimated amount due for 2018/19 over the next three months. 

How can I make this situation better, what is the chance of getting the 2017/18 tax collected through the 2019/20 paye, all his earnings are through Paye, salary is in excess of £100k.

 

Thanks

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07th Jan 2019 11:22

How much is it going to cost to mess around in order to gain some minor timing advantage on a £2,000 tax liability?

Why is someone with "salary is in excess of £100k" that bothered?

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By CW2012
07th Jan 2019 11:32

You know the adage, the more you've got the less you want to spend. The guy is trying to say that we should have put it through his tax code, there is a whole back story to this, is it possible to get the 2018/19 tax code amended at this late stage.

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to CW2012
07th Jan 2019 11:36

I'd tell him that he's already had at least 9 months since receiving the income before he's had to pay the tax, and asking for it to be deferred by up to a further 15 months before it's settled is a bit cheeky at his level of income.

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to CW2012
07th Jan 2019 11:56

CW2012 wrote:

You know the adage, the more you've got the less you want to spend. The guy is trying to say that we should have put it through his tax code, there is a whole back story to this, is it possible to get the 2018/19 tax code amended at this late stage.

He's missed the time limit. That's either his fault - or yours!

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By CW2012
07th Jan 2019 11:44

I don't disagree but that isn't his desired income and we get paid by our clients to do their bidding, legally and ethically of course.

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By CW2012
07th Jan 2019 11:44

Sorry should heave read outcome, not income.

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07th Jan 2019 12:29

No chance I'm afraid - I've tried in the past where we only missed the deadline by a couple of days and HMRC were unable to do anything.

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07th Jan 2019 12:42

Sorry to say that I've not much sympathy.

I have clients struggling to pay bigger tax bills on incomes of around £20000.

Get your tax returns in earlier, tick the right boxes is my advice. Meanwhile, cancel that order for caviar and champagne.

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By Matrix
07th Jan 2019 12:43

You can get the current year’s tax removed from the code unless it is P11D.

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By CW2012
07th Jan 2019 15:15

Thanks Matrix , that was something I had in mind. The guy wants a time to pay arrangement post April 2019, would he end up with the 5% surcharge post February.
This is a real pain for a small SA job.

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to CW2012
07th Jan 2019 15:30

Yes, he would get a 5% surcharge and he absolutely deserves it.

This tax debt is a quarter of his monthly salary. Tell him to let the moths out of his wallet.

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to CW2012
08th Jan 2019 16:19

CW2012 wrote:

Thanks Matrix , that was something I had in mind. The guy wants a time to pay arrangement post April 2019 ....

https://www.gov.uk/hmrc-internal-manuals/debt-management-and-banking/dmb...

"Time To Pay (TTP) ... allow viable customers who cannot pay on the due date to make payment(s) over a period that they can afford."

Says "cannot", not "is disinclined to". Surely HMRC are not that gullible?

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07th Jan 2019 18:12

He might get a 12 month TTP agreement- there’s a link on HMRC websit somewhere, poss on the clients Gov Gateway actually.

I did it last year for £3k, I think by phone.

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to atleastisoundknowledgable...
08th Jan 2019 16:16

atleastisoundknowledgable... wrote:

He might get a 12 month TTP agreement- there’s a link on HMRC websit somewhere, poss on the clients Gov Gateway actually.

I did it last year for £3k, I think by phone.

You are kidding?! He's down to his last £100k!! When you say TTP you mean Time To Pay - with this person asking for that would be more like Taking The P!ss.

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to atleastisoundknowledgable...
08th Jan 2019 16:22

OP - let me know if this guy gets any kind of TTP agreement and I'll send a letter of complaint to my MP.

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09th Jan 2019 13:56

Yes, I have had a client who was earning over £100,000 with a tax liability of c. £3,000 and he managed to get a TTP arrangement with HMRC.

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