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Client unable to pay SA liability on 31 January 2014

anniemanniem Experienced MentorPewsey, WiltshireRegistered Posts: 1,326
I have a client who will struggle/be unable to pay their SA liability on 31 January 2014. Advice appreciated. Many thanks
FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire

Comments

  • BIG WALBIG WAL Well-Known Registered Posts: 133
    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.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    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!!!!
  • anniemanniem Experienced Mentor Pewsey, WiltshireRegistered Posts: 1,326
    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.
    FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire
  • Rozzi RainbowRozzi Rainbow Trusted Regular Registered Posts: 465
    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!
  • anniemanniem Experienced Mentor Pewsey, WiltshireRegistered Posts: 1,326
    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.
    FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire
  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    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 WALBIG WAL Well-Known Registered Posts: 133
    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.
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