Client unable to pay SA liability on 31 January 2014

anniem

I have a client who will struggle/be unable to pay their SA liability on 31 January 2014. Advice appreciated. Many thanks

BIG WAL

Phone HMRC Payment Support Service on 0300 200 3835. Supposedly for individuals and businesses, but hopefully they'll talk to you as the authorised agents as well. Suggest you get an idea from client how they intend to pay off the amount due before you call HMRC.
.

T.C.

They are only usually willing to listen after vigorous checks into why the client can't pay. Let's face it, everyone would do that if it was that easy. They will ask for details about income, expenditure etc etc. Not really the best route to choose. I would recommend they try for a bank loan; that is what HMRC will suggest too!!!!

anniem

I think they'll struggle to get a loan on self employment figures, half the problem is that it's the extra 50% first year.

Rozzi Rainbow

I'm sure you've thought of this already, but if their earnings are that low and it is the POA that is causing the problem, would you be able to justify reducing the POAs based on an estimate of their 13/14 income? Be careful though, we've seen this year that HMRC are strict about charging interest if it turns out the POAs shouldn't have been reduced, and they won't listen to any appeals against it!

anniem

Thanks Rozzi, Yes, I have thought of this and have their current year to date records to investigate reducing POA, even though I have already submitted TR to HMRC to try and demonstrate that client isn't a 'leave it to the last minute' person.

deanshepherd

I think it's too early to be contacting the Business Payments Support line. In my experience they are much more flexible if you are within 6 weeks of the due date. I always get the client to ring rather than do it as agent. The client tends to give a better sob story.

BIG WAL

Thanks for that useful advice Dean. I've one instance where I made the initial contact but client was contacted direct by Payment Support and in the end got a far better outcome than I would have achieved. A couple of others decided to deal with it themselves without asking for advice, and again got a much better result that I would have anticipated.

Sadly banks don't seem to be lending at all to small businesses - despite their denials.