Very late payment of tax

Remortgaging would probably be your best bet. If your bank freaks - try another one.

In message , Simon James writes

Given that you have got a year to play with, why not ask them, or get your accountant to ask anonymously.

I've done this in the past and the bank, (NatWest), have done it - I think it was £37,000.

You can ask but I suspect HMRC might have little sympathy and they certainly will want interest and a penalty for late payment. They might also feel justified in asking what you did with the obviously large sum of money you got from the sale of your shares. Why didn't you put some of it aside to pay your CGT? After all, if they give you credit it's our (the rest of us') money that they are lending you!

I agree, the sum is too large, the period too long, and the tax has become due because of an acquisition of 'real' folding money so their view will be that the recipient should have held back the bit that didn't actually belong to them.

I presumed the OP is expecting this. It will probably be less that the cost of borrowing elsewhere (another reason why they won't advance it).

I am sure that there is no penalty for a pre-arranged late payment.

tim

I don't think there is any such thing as a pre-arranged late payment. If you send your return in late you get an automatic penalty and if you pay the tax due late there is an automatic penalty plus interest. The best you can hope is that HMRC does not press you for payment (ie they don't take proceedings to recover the money you should have paid so long as you keep up the instalment plan that you have agreed with them). I don't think they have any discretion to waive the interest or penalty just because you told them you didn't have the money.

The 100 quid for being late is for submitting your return late. That's not what we are talking about here. We are talking about sending the return in but paying late (the two things are separate). If the payment is late there is a penalty (as well as interest) and I *think* the penalty for late payment IS tax geared. I suspect it will be a lot more than 100 quid.

The 'up to 100%' of the tax due for non-disclosure is another matter entirely. That is where you submit a return and miss off some income fraudulently or negligently. Then you can be in serious trouble; if you aren't prosecuted you will have interest plus a tax geared penalty of, as you say, up to 100%.

Oh, I forgot to add: PLUS a full scale investigation of all of your financial affairs over many years!

Oh well, it's not good news then. I did have the tax money aside, but something came up in the family and I had to take a rash decision. Spoke to my advisor today who said the IR will certainly not allow me to pay over 16 months and would rather make me bankrupt, so that'll be fun.

Jim

There is.

Ah, your're referring to the 100 quid for being late, not the "up to"

You're probably right, but 100 quid in 70 grand isn't going to make much difference.

tim

Anyone know if it would make a difference if I provided evidence that I would have the money after 16 months?

Indeed, has anybody ever negotiated payment terms for such a period? That's my main question; and if you did - how did you go about it?

Jim

Probably not. But in your OP you said a loan was out of the question (though you then said a mortgage was an option...?)

If you can demonstrate that the money is coming in 16 months, that should secure a loan at a reasonable rate - but HMRC are not bankers.

You should have taken out the bank loan for whatever came up in the family. The money you set aside for the taxman really should have been ringfenced. You just cannot expect HMRC to wait when, after all, they are collecting the nation's money.

Exactly Martin. HMRC cannot be expected to act as personal bankers because the money has already been used. They will expect the taxpayer to take out a loan and it is up to him to negotiate with a bank on the strength of the money he is expecting in 16 months. HMRC should not be expected to take that risk.

I am afraid that's more likely to apply where you owe fairly small amounts of tax on earnings. I doubt HMRC would have much sympathy for someone who realised a large amount of cash, and hence a capital gain, by selling shares and then failed to retain enough money to pay his tax. Just being realistic.

I dont recall him asking for sympathy, rather he was seeking knowledge on his best way forwards given his circumstances.

Adrian Smith

I am not denying him my sympathy Adrian. I said that I doubt HMRC would have much sympathy.... In other words I doubt HMRC would be inclined to be lenient towards him, if you need to be precise about my meaning. He has now received a fair amount of knowledge, including the fact that HMRC will not have much sympathy!

He does not need sympathy from HMRC or any one else. He simply has a problem and is looking for a sensible solution.

In actual fact HMRC are pretty easy to deal with and relatively flexible (within limits), even when large sums are involved.

On the flip side HMRC has a ferocious bite so best keep your head down, so to speak.

My advice to the OP. Find a good financial advisor and find a way of releasing some equity.

Adrian