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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4932
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I'm facing a fairly hefty CGT bill at the end of January of

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I'm facing a fairly hefty CGT bill at the end of January of around £20,000. I don't have the funds to cover it but could offer a few thousand in the first instance.
I spoke with the tax office who say they don't offer repayment terms, but if I don't pay effectively it goes to their debt team who will likely offer me terms.
My question is: if this situation arises, would they ask me for an incomings and outgoings statement etc, or is it the case that I offer a monthly amount and they hopefully accept? Also, would it be registered on my credit file as a default as it would be with other debts?
FYI, the gain was as a result of a business sale, of which I was a junior shareholder with a 20% stake in the business.
Thanks :)
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

My advice is to contact HMRC at your earliest opportunity.
Here is a link to HMRC website dealing with this topic

https://www.gov.uk/difficulties-paying-hmrc/when-you-call-about-your-tax-bill


It is likely HMRC will ask you about your income and expenditure to access your request for a payment plan.

Provided you offer a reasonable and fair payment plan, HMRC would be receptive to accepting a payment plan that would clear the debt in say 12 months.. you could stretch it to 18 months. Asking for extention to clear your tax liability would not give rise to it being registered on your credit file prima facie.

If you default in your payments then you may see reference to it on your credit files.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4932
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and 2 other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Hi,

many thanks for your quick reply. To be honest I'd struggle to repay £15k or so over even 18 months - what would be the case if I asked for 36 months for example, would it be flatly refused and I'd end up in court or similar?

My income is a little complicated - I now own my own property outright, but I have an online business where income is very much up and down. We've only been in the new property for a few months, so our expenditures haven't settled down just yet to get an accurate picture.

Kind regards,

Martin

Expert:  taxadvisor.uk replied 2 years ago.
Martin, thank you for your reply.

I doubt they would accept 36 months repayment plan without shrewd negotiations. There is no harm in trying. Most likely to accept up to 24 months payment plan.

As I said before, you have to show credence in what you present to make it acceptable.

If you have an accountant, you could enage him for professional negotiations.
You should bear in mind, the action of going to court is normally done as a last resort.

Don't give up and remain positive as you do intend to clear the outstanding amount.

I hope this is helpful.
Customer: replied 2 years ago.

Thanks for the info - right now I'm weighing up asking family for a loan, etc etc... My own fault as I spent a bit more on a new house than I was intending, thought I'd have more left at the end of the year than I will.

Anyway, question answered - many thanks :)

Expert:  taxadvisor.uk replied 2 years ago.
Martin, thank you for your reply.

Stay focussed and positive... you will overcome it.

I thank you for accepting my answer.

Best wishes.

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