Pre-Budget Statement - Avoiding Late Payment Surcharges

A feature of the self-assessment system is that it imposes a surcharge on income tax paid more than 28 days late - for example, if the final payment for 2008/09, due on 31 January 2010, is not paid by 28 February 2010.
HMRC's current practice however (possibly prompted by the general recession) is not to levy a surcharge if a trader is suffering temporary cash flow problems and, before the surcharge becomes due (for example, before the end of February), he contacts HMRC's Business Payment Support Service to explain his position and negotiate a 'time to pay' arrangement. Interest will, however, remain payable under the usual rules.
The point of contact is the Business Payment Support Line on 0845 302 1435, open 8am to 8pm Monday to Friday and 8am to 4pm Saturday and Sunday. Further information may be found at www.hmrc.gov.uk/pbr2008/business-payment.htm.
February 2010