-
What have they charged you interest on, the first payment that was due on the 31st of July?
No idea if they'll be able to cancel it but they should be able to spread the cost, or even just add it to your tax code so it comes out at source over the next 12 months with your CIS payments. Getting through to HMRC can be a struggle but I've generally found them pretty understanding and helpful if you're not taking the piss.
Gewürzt-
I assume it is interest on the last years payments on account that were reduced/deferred?
@William. - It's easier said than done, but I see it as once you stump up the initial payment on account, then you are basically just paying your owed tax every 6 months rather than every year. Doesn't work so well if your income is very inconsistent year to year or month to month.
cjr
Payments on account for freelancers who complete self assesment: I request not to make these every year. Usually they don't chase me. I never have the cash halfway through the year to pay any tax in advance.
This year, even though I'm self employed, I'm paying 20% tax at source due to a new scheme to stop construction workers avoiding tax. (CIS) So if it was hard to make payments on account before, now I definitely cant.
I've just paid my approx 6k tax bill for 21/22, in time for jan 31, but HMRC say I owe them £300 in interest for late payments on account.
What are my chances of getting this cancelled? I have no cash, am owed approx 4k by contractors, and I think they are cunts and its totally unjustified. Any advice very welcome.