The government have introduced a budget plan to help people to pay their self assessment taxes over a period of time by direct debit. The plan only applies to those people whose tax affairs (and payments) are right up to date though. If you are one of those lucky people, you probably don’t need the opportunity to pay by instalments via direct debit, but you can also use the scheme to arrange your payment due on the 31st January 2010 to be paid in full by direct debit as well.
If you are behind with your tax payments, [private_basic]you need to ring up the Tax Office on 0845 366 1204 to negotiate how you are going to settle the arrears and then you will be able, hopefully, to get you next tax liabilities onto the budget scheme.
This isn’t a huge change as people have been making instalment payments on their tax liabilites for many years. The difference is that it can be arranged online at the HM Revenue & Customs website and the payments made automatically by direct debit. This is a much safer and more secure way of paying the tax bill and preferable to sending a cheque in the post or making an online payment into the void hoping it gets allocated to your account. The direct debit scheme, coupled with online filing of VAT return forms, has transformed VAT for businesses as the payment is taken out around the 12th of the month following the due date, and no payments or forms get missed through postal difficulties.
As much as I don’t like this government, there are some changes like this which are to be applauded as they actually benefit us as taxpayers and not just the government.
You will need to be registered on the HM Revenue & Customs website before you can set up the direct debit and budget scheme so nip over there now and get signed up asap.
As always, please don’t hesitate to get in touch on 0800 047 0731 if you have any questions or concerns about this scheme.