Reply With QuoteI think if you can't trust her to do the right thing with it, you shouldn't even be considering giving her anything.
Hi little problem.
My granddaughter has to pay the balance of her income tax ( self employed) by next week. In a nutshell they are just over £1000 short. Now I don't mind in the least lending the money but I need to make sure it is used to actually pay the tax.
So, can I pay for her on line or might it be better to go with her to her bank. Or could I make out a cheque to her payable to the I R. Or as it's coming from a third party would she have to declare it as income.
The problem is she has booked a rather expensive holiday for the end of next week. Now as far as I know this is paid for, certainly the reason she is tight for cash. But no way am I going to hand over the money directly and find out she has splashed it around Marbella.
I think if you can't trust her to do the right thing with it, you shouldn't even be considering giving her anything.
Don't worry about declaring it anywhere; that doesn't matter.Originally Posted by BrianT
If HMRC will still accept a cheque in this day and age then get the payment details and just send a cheque directly to them. Probably easiest that way. Job done. They do not and will not care where the money came from.
Play old and daft. Ask who to make the cheque out to.
....and by the way, that's top Grandad work
You can pay the bill online if you have her self assessment UTR https://www.tax.service.gov.uk/pay-o...elf-assessment
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Ally I was young once, a long time ago perhaps but I still remember the temptations of youth.
I suppose it's what Grandads do, don't really care about her paying it back, but I knows she will......Grandma isn't as much a push over.
Thanks for the help.
You can pay it by credit card with a small fee (probably about £25 on £1K). Sorry to be mean spirited but if she is going on holiday rather than having paid her tax I would let her sort it herself.
So, in order to pay for the holiday, they elected to not pay their taxes? I also have relations (on the other half's side) with similar priorities.
The HMRC bank details are public knowledge (Cumbernauld if you're not sure which - they say) and of you can include her NI number it will (eventually) be credited to her account.......they don't care who pays it!!
Having had to chase money around HMRC because I didn't use the absolute correct reference for that quarter - I would only pay them money if I had the grand-daugher's reference # to include in the payment.
Al
About 4 years ago my business went through a very tough period and my absolute priority was to make my tough tax payments twice a year, this meant no holidays, going out with friends, eating beans on toast (!) etc until it was sorted. Your grand daughters priorities in my opinion are completely wrong I could go on but this discussion would need to be in BP.
Don't pay it, she's an adult she has to sort it. She could of sorted it she chose not too..ultimately her decision.
Make sure you get the right reference number or she/you will have games getting the IR to tally up the payment.
This is what children/ grand children do, yes they should stand on their own two feet blah blah, but it's what we as parents/ grand parents do, bail them out from time to time. I would though put a bit of a frightener on her, tell her the trouble she would be in from the government if she defaults, use a bit of poetic licence. Good man and hopefully she will learn from her mistake.
I sympathise with those saying "don't pay", but I think that's the OP's right to decide.
I certainly never had to go cap in hand to parents because I'd spent money on a holiday rather than paying my tax/mortgage/etc, but if the OP wants to then it's his choice.
M
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Pay, have the discussion and smile.
When you look long into an abyss, the abyss looks long into you.........
You have kids?
When you look long into an abyss, the abyss looks long into you.........
Whilst I 100% agree with what your saying I'm a little perturbed by your disparaging inference re. beans on toast! What's wrong with beans on toast? Very nutritious and very tasty. We (SWMBO and myself) frequently partake, typically once a week. Yummy :-)
I'm sort of with Ally on this one.
She's heading to Marbella, yet doesn't have the money to pay her tax bill?
She needs to learn discipline with money, and bailing her out might not be the way to teach that lesson.
I have very first hand experience of someone's inability to live within their means and can say with experience, at least in my case, giving them money doesn't help - the problem is still there and you're poorer.
A middle ground, if possible, might be to pay the bill for her but to not tell her. ;-)
That way she experiences the angst (if any) of not paying but doesn't end up with a penalty she can clearly ill afford.
I wouldn't pay it either. My older brother came begging to me to pay his rent a few years back as he had "messed up my timings". He knows I earn a lot more than him and he knows parents and grandparents in our family are sticklers for standing on your own two feet financially and would definitely not pay it. He got into a lot of debt in his early 20s by buying stuff on credit. He learned the hard way that the family won't bail him out and he must pay for his own stupidity. He's a working man in his 40s who smokes 20 a day, drinks heavily and spends a lot of money on gadgets. I'm afraid I said no, but I would be happy to help him talk to his landlord. He found a way of paying by ebaying some of his stuff.
It's less than a grand. And all HMRC does is add a bit of interest for lateness. So no big deal to just leave her to pay her own bill once she's back from her holiday and presumably earning again.
Plus £100 standard late fee, IIRC
@PipPip, I think we have the same older brother mate :-)
I think the £100 is an initial late FILING penalty. Late tax is 5% addition afaik. As long as you actually pay it, HMRC don't really get too stressed about paying it a bit late (with penalty interest of course).
To avoid future problems, simply pay for her next holiday in advance.
That way, next year, she'll have plenty of money available to pay her tax bill.
Or not.
Sounds like a Viz handy hint!
I'd let her pay it late, she will only incur 2.75% pa interest if she pays before 1 march 2018
My mistake pal, you're right. Its a late filing penalty.
Ryan
Was thinking that doesn't sound like bad advice.
But - is she likely to be selected for "payment of tax on account" for future years?
I'm in the 'tough love' corner on this, if the OP bails her out he's setting a precedent and she'll expect it again.
Any one who's self -employed should put money aside to pay tax bills, it's crazy not to.
If she incurs a penalty for late payment it'll teach her a hard lesson and that may do her more good in the long term.
Paul
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