The Inland Revenue

[Big Jenny]

My son has been self-employed for a couple of years now. When he lived at home, I tried to help him by putting his income tax away in a Post Office account every week, so that whatever happened, he had the money to pay it in January and July each year. He left home last Spring, and has been finding it a bit of a struggle. Consequently, he hasn't been saving his income tax money weekly, and the payment (�800-ish) is due by 31st Jan. Does anyone have any ideas what he can do? Would the Inland Revenue consider payment in instalments, if he were to write to them and explain the situation? How sympathetic are they, in circumstances like these? It would probably fall to me to compile the letter, and I wonder how best to word it to appeal to their better nature. Any tips would be very welcome.

[WendyS]

I'm sorry your son has been struggling, but if he's old enough to be self employed and live away from home, he's surely old enough not to rely on his mother to still do everything for him. Unfortunately I don't think the Revenue will necessarily accept payment by instalments. They're even less accommodating than the banks when money is owed. I suggest you get your son to write to them, explain the situation and ask what payments they will accept. Don't do it for him. He's old enough now to take responsibility for himself. Just think what a rod for the back you are making for his future wife or partner if he thinks it's always OK to rely on somebody else to do his dirty work for him. If you really want to help him out I suppose you could loan him the money yourself if you have it, but make sure he pays it back every month and doesn't just treat you as a soft touch. Taxes are sadly a fact of life for everybody and one of the first lessons of being an adult is that you have to face up to paying them on time.

[dzug]

They are not exactly going to be sympathetic (not to the extent of waiving any interest, etc, due anyway) but they will accept the situation:

http://www.hmrc.gov.uk/howtopay/prob-indiv-comp.htm

Is he paying his national insurance at the same time? I thought that was quarterly but ICBW.

[Loosehead]

For future reference he can ask them for a payment book and pay it to them every week if he wants, he can then reclaim any overpayement using a tax return.

[Big Jenny]

Thank you all for your helpful ideas. The website suggested by dzug was useful, and it would seem that the I.R. will accept instalment payments if we get in touch with them. There are also some other useful links on there. Yes, my son has been paying his Nat. Ins. contributions by Direct Debit.

I had no idea that you could pay weekly with a payment book, Loosehead, and we will investigate this.

You are, of course, quite right WendyS, I shouldn't have to worry about this - he should be sorting himself out. However, I DO worry, because I don't want him to get clobbered for loads of penalties, interest etc. That doesn't help the situation, does it? He is 22, and his partner is 17, and this is the first time either of them have lived away from home and had to manage on their own. I know it's hard for them, and I want to see their business succeed - not go down the pan for want of less than �1,000. However, I am not in a position to lend him the money, unfortunately.