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Claim to reduce

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12 February 2013

Issue: 4390 / Categories: Forum & Feedback

A client is unable to make the 2012/13 self assessment payments on account and has proposed that a claim to reduce these should be made, even though there is no evidence to support this

My client has a substantial amount of tax payable on 31 January 2013. About three-quarters of this relates to his payment on account for 2012/13.

He has serious cash flow difficulties but cannot realistically expect time to pay because he has spent the money rather frivolously – I gather he had a very good Christmas.

He has asked me what would happen if he advised me that his 2012/13 tax was expected to be basically nil due to reductions in dividends and profits and made an SA303 claim to reduce.

He says he could then review the position and potentially realise he was in error later this year when he expects to have funds available to settle the payment on account and at that point amend his claim and pay up.

I have warned him that HMRC can refuse to accept a claim to...

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Claim to reduce

© Copyright LexisNexis 2024. All rights reserved.

12 February 2013

A client is unable to make the 2012/13 self assessment payments on account and has proposed that a claim to reduce these should be made, even though there is no evidence to support this

My client has a substantial amount of tax payable on 31 January 2013. About three-quarters of this relates to his payment on account for 2012/13.

He has serious cash flow difficulties but cannot realistically expect time to pay because he has spent the money rather frivolously – I gather he had a very good Christmas.

He has asked me what would happen if he advised me that his 2012/13 tax was expected to be basically nil due to reductions in dividends and profits and made an SA303 claim to reduce.

He says he could then review the position and potentially realise he was in error later this year when he expects to have funds available to settle the payment on account and at that point amend his claim and pay up.

I have warned him that HMRC can refuse to accept a claim to...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Issue:

4390

Categories: Forum & Feedback [1]

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