Hi
My Vat & Tax payments are due this month but big cashflow problems.
Payments due in, which would cover both and a considerable amount over, are running late and will not be in for 1/2 months.
I can stretch to paying one of them but seriously doubt both so advice appreciated on which I must pay and which I could leave and what the consequences would be?
Ken
Ask the VAT man and the tax man, they're the only people who can help.
Alternatively loan some money to the business.
In my experience the VAT man will shout harder and longer about late payments, it does depend a lot on your previous history though. The odd PAYE/NIC payment I have done late just gets a (fairly) polite reminder not to do it again. Late VAT payments tend to produce results like being taken off the annual accounting scheme and quite 'stern' letters.
You don't give any clue about the amounts involved or how often you make these payments.
If you pay VAT every three months and PAYE & NIC every month then you may find that paying VAT late but before the next payment is due is not as big an issue to them than missing more than one payment with PAYE & NIC.
Hi Peter
Sorry a bit more info Vat every three months current one due around 7,000. The tax is my personal twice yearly payment coincidentally similar amount to the Vat.
Ken
I was going to reply that PAYE is only due in the month on payments made before the 6th day. I often pay myself after the 6th so the tax/NICs due fall into the next month but this isn't applicable in you case. I guess that you will get hit with interest and possibley a late payment fine if you don't pay the tax but that is probabley the least of your problems if you just can't pay it. My corporation tax cheque for £6000 got lost this year and I was concerned that I would get hit with a fine but in the end I was only charged interest which wasn't unreasonable as the money was still sitting in the company account anyway. Kevin
The VAT surcharge is on a rising percentage with a warning first time so you should pay your income tax first.
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