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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3817
Experience:  FCCA FCMA CGMA ACIS
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HMRC say I owe tax year ending Apr 2015 and are asking

Customer Question

HMRC say I owe tax for tax year ending Apr 2015 and are asking for payment now
I don't understand why as I thought payment isn't due until Jan 2016
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to be assist you with your question. As we all know the Government are short of readies abd probably try through various means to obtain an early settlement. I personally have been at a meeting with the Inland Revenue as they were then when an Inspector of Taxes demanded immediate payment in cash for tax which was not even due! Needless to say he didn't get it, merely reported to his superiors who hurriedly withdrew the demand.You are correct in your surmise that tax for the 14/15 tax year is not due until 31 January 2016. However, if self employment is involved, it is normal for an interim payment of about half the anticipated tax to be due to be billed and settled half way through each year. Are you sure that this is not what HMRC are wanting? Otherwise I would politely remind the tax office concerned of the legislation currently in force and the payment dates set out by Parliament. I do hope that I have shown you a way forward in this matter.
Customer: replied 1 year ago.

My tax is paid by PAYE. I have an outstanding bill from 2013/2014 which I am happy to pay but don't understand the 2014/15 bill.

May thanks for your help

Expert:  bigduckontax replied 1 year ago.
The outstanding tax for 13/15 was due by 31 January 2015 so HMRC are quite within their rights to press for payment. They are entitled to charge interest on outstanding taxes due.
When HMRC say you owe money for 14/15 have they sent you a statement explaining why? If not demand an explanation from them.
It is normal for PAYE adjustments to be collected through an alteration in the tax code in the year after the year in which there is a deficiency. For example if there is one in 12/13 then the tax code for recovery of the outstanding moneys would not be altered until the 14/15 tax year. I really wonder exactly what game your tax office is playing. I suggest that you write to them demanding an explanation of their antics.
Expert:  bigduckontax replied 1 year ago.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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