Vat Payment & Tax Payment Cash Flow Problem


K

Ken

Hi

My Vat & Tax payments are due this month but big cashflow problems.

Payments due in, which would cover both and a considerable amount over, are
running late and will not be in for 1/2 months.

I can stretch to paying one of them but seriously doubt both so advice
appreciated on which I must pay and which I could leave and what the
consequences would be?

Ken
 
Ad

Advertisements

T

tinnews

Ken said:
Hi

My Vat & Tax payments are due this month but big cashflow problems.

Payments due in, which would cover both and a considerable amount over, are
running late and will not be in for 1/2 months.

I can stretch to paying one of them but seriously doubt both so advice
appreciated on which I must pay and which I could leave and what the
consequences would be?
Ask the VAT man and the tax man, they're the only people who can help.

Alternatively loan some money to the business.

In my experience the VAT man will shout harder and longer about late
payments, it does depend a lot on your previous history though. The
odd PAYE/NIC payment I have done late just gets a (fairly) polite
reminder not to do it again. Late VAT payments tend to produce
results like being taken off the annual accounting scheme and quite
'stern' letters.
 
P

Peter Saxton

Hi

My Vat & Tax payments are due this month but big cashflow problems.

Payments due in, which would cover both and a considerable amount over, are
running late and will not be in for 1/2 months.

I can stretch to paying one of them but seriously doubt both so advice
appreciated on which I must pay and which I could leave and what the
consequences would be?

Ken
You don't give any clue about the amounts involved or how often you
make these payments.

If you pay VAT every three months and PAYE & NIC every month then you
may find that paying VAT late but before the next payment is due is
not as big an issue to them than missing more than one payment with
PAYE & NIC.
 
K

Ken

Peter Saxton said:
You don't give any clue about the amounts involved or how often you
make these payments.

If you pay VAT every three months and PAYE & NIC every month then you
may find that paying VAT late but before the next payment is due is
not as big an issue to them than missing more than one payment with
PAYE & NIC.
Hi Peter

Sorry a bit more info
Vat every three months current one due around £7,000.
The tax is my personal twice yearly payment coincidentally similar amount to
the Vat.

Ken
 
K

Kev

Ken said:
Hi Peter

Sorry a bit more info
Vat every three months current one due around £7,000.
The tax is my personal twice yearly payment coincidentally similar amountto
the Vat.

Ken
I was going to reply that PAYE is only due in the month on payments
made before the 6th day. I often pay myself after the 6th so the
tax/NICs due fall into the next month but this isn't applicable in you
case.
I guess that you will get hit with interest and possibley a late
payment fine if you don't pay the tax but that is probabley the least
of your problems if you just can't pay it.
My corporation tax cheque for £6000 got lost this year and I was
concerned that I would get hit with a fine but in the end I was only
charged interest which wasn't unreasonable as the money was still
sitting in the company account anyway.
Kevin
 
Ad

Advertisements

P

Peter Saxton

Hi Peter

Sorry a bit more info
Vat every three months current one due around £7,000.
The tax is my personal twice yearly payment coincidentally similar amount to
the Vat.

Ken
The VAT surcharge is on a rising percentage with a warning first time
so you should pay your income tax first.
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top