The deadline for filing Self Assessment tax returns with HM Revenue and Customs (HMRC) has passed and we are seeing a number of people coming to us for help to deal with unaffordable tax bills. We know that many people put off filing their Self Assessment tax returns by 31st January because they are worried that they cannot pay the tax that is due for payment. This is a false economy as an automatic late filing penalty of £100 has been introduced for tax returns filed after the deadline and the penalty increases the longer the return is delayed. The late filing penalty applies even if there is no tax to pay, so it is important to file the return on time, even if the tax cannot be paid immediately. There is also a penalty for not paying the tax, however there are ways to deal with unaffordable self assessment tax debts.
What can be done if I cannot pay my tax bill?
Many people worry about what to do when then cannot pay self assessment tax debts. It may be tempting simply to ignore the situation. Don’t – HMRC will catch up with you sooner or later and the situation will only get worse. The good news is that help is available. A phone call to Moorhead Savage is a good start. We will talk you through your options for dealing with tax debts and explain how we can deal with HM Revenue and Customs on your behalf.
What about my other debts, can you also deal with those?
We often find that people who cannot afford to pay their self assessment tax bill also have other debts, such as credit card debts, loans or overdrafts. In these cases, we can put in place a legally binding agreement with all your creditors, including the tax man, allowing you to make affordable monthly payments. These types of arrangements, known as Individual Voluntary Arrangements or IVAs are flexible and powerful tools for dealing with unaffordable debt. In some cases, it may even be possible to write off some of the debt, if the debt is just too high to be repaid over a reasonable timescale.
Can you deal with my business debt as well?
Many of our clients also run their own businesses and if cash flow is a problem, business debts may also have grown to the point where they have become a problem too. It could be that the business is struggling to pay its bills, or perhaps payments to creditors have already been missed and legal action is pending against the business. For example, a County Court Judgment or CCJ may have been obtained, or bailiffs may have been sent to demand repayment. We can include business debts of sole traders and partnerships into IVAs, as well as personal debts, so that all debts are dealt with in a single arrangement with one affordable monthly payment.
So don’t lose sleep over late tax returns and unpaid self assessment tax debts, get in touch and find out how we can help. Call Moorhead Savage today on 01709 331300 for a free and confidential chat about your options.