Query regarding Inland Revenue

[demon_x_slash]

Just a hypothetical query at the moment - my partner has recently become employed after just over a year working on a self-employed basis as a contractor. His employment was managed through an intermediary company that handled his pay, tax contributions, etc. The company was inefficient at best and negligent at worst, with his pay going in late or incorrect more often than not, and the rules for what he could and couldn't claim changing at the drop of a hat. Now based on past experiences with this company, OH is anticipating the possibility of an underpayment in tax as the year rolls to a close, and I wanted to know how the IR would react to this. I know they're the Great and Almighty Inland revenue, with powers the like of which no ordinary demon may wot of, but would they be amenable to something like an installment plan, or would they demand the entire amount back in one go? How do these kinds of things usually pan out? It's not a certainty but we'd like to be prepared just in case. Ta, mes amies.

[poppynurse]

as long as you communicate with them the IR are usually reasonable, they will want the money if it is due but do accept installments.

[stacymason]

Hi demon,

 

If your partner submits his tax return before 30th September he will be able to pay any underpaid tax via his tax code, so he will pay a little more tax through his employment every payday until the amount is cleared, this is usually quite a manageable amount and is what I'd avise and what the revenue would prob advise as well.

 

Stacy

[feefofum]

Just to confirm, the IR do indeed accept repayment plans, and are very reasonable! My partner has had a terrible year financially (he's self employed) and they were demanding more than 1K. He called them, explained his circumstances, and they asked him to write down a list of all (absolutely everything) his current income and outgoings per month. He did so, then made an offer to pay off £50p.m which they accepted. they did say they don;t do this readily and often, but as this is his first time planning a repayment plan to them they were more than helpful!

 

Hope thats eased your worries