paying tax as self employed

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JayL

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Post by JayL » Tue Aug 03, 2010 5:38 pm
Hi there,i have an IVA in place and am also self employed,i have been told that i need to pay my tax on a monthly basis now until the end of the financial year although when i spoke to HMRC they said i could just continue to pay my self assessment tax as normal,which is correct ?
 
 

kallis3

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Post by kallis3 » Tue Aug 03, 2010 5:45 pm
Hi,

I'd be inclined to do as HMRC say, but I'm not 100% sure.

One of the experts or one of our self employed posters will be along to help.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
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31101932

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Post by 31101932 » Tue Aug 03, 2010 6:55 pm
I believe that the advice to pay your tax monthly is to avoid the temptation to spend the money on other things and find yourself in a psoition where you are unable to pay the tax at the end of the year.

If HMRC are happy not to receive your tax monthly then maybe you could put it into a bank account which you can not access until the tax is due.
 
 

kallis3

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Post by kallis3 » Tue Aug 03, 2010 6:59 pm
Good idea!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

MelanieGiles

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Post by MelanieGiles » Wed Aug 04, 2010 12:17 am
There are schemes in place now whereby you can pay your tax monthly, but if you don't want to do this set up a separate savings account to lodge the tax monies to avoid spending it and then running into trouble with the authorities.
Regards, Melanie Giles, Insolvency Practitioner
 
 

Michael Peoples

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Post by Michael Peoples » Wed Aug 04, 2010 9:52 am
If your IVA has just been approved the liability for 2010/11 will be included as a debt. This means your monthly allowance for tax is to be paid into the IVA until April as you will not receive a tax bill for the current year.

From April 2011 the responsibility for meeting ongoing tax falls back on you and you should save the relevant amount each month. This will prevent future problems as and when your HMRC payments fall due.

I hope this makes sense but if not your IP should be able to explain it fully.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
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