Dental Tribune United Kingdom Edition

DM Indesign.indd 1 29/10/09 13:35:27 9Tax FeatureFebruary 7-13, 2011United Kingdom Edition to ask HM Revenue & Customs for time to pay. HM Revenue & Customs’ Business Payments Support Service was set up to meet the needs of businesses and indi- viduals who are experiencing difficulties in paying their tax, originally in response to the “credit crunch”. Depending on the tax payer’s circumstances, H M Revenue & Customs may agree time to pay where it be- lieves that somebody is genu- inely unable to pay in full and on time. H M Revenue & Customs will still charge inter- est on any unpaid tax. The five per cent sur- charge on tax unpaid for more than 28 days will usually be waived, but only if the Business Payments Support Service is contacted prior to the date that the tax was originally due (usually 31 January). H M Revenue & Cus- toms’ Business Payments Sup- port Service can be contacted on 0845 302 1435. Another option is to borrow the tax due. There are a number of fi- nance companies such as Braemar and LDF Profes- sions who specialise in mak- ing loans to dentists over six or 12 months to allow them to spread their tax bills. The interest charged usually approximates to bank over- draft rates although it is usu- ally much easier to borrow from one of these specialist companies. A Rainy day Although it is easy to say, the best answer is always to put some money aside each month in order to have sufficient money to pay tax bills. We are always happy to give clients an estimate of how much they should be sav- ing each month, tailored to their own personal circumstances. It can also help to have a “flexible” or “offset” mortgage whereby you effectively re- ceive the same rate of interest on your tax savings as you are paying on your mortgage, and you are allowed to drawn down on the savings/mortgage each January and July. If any readers who have not yet paid their January tax bill are having difficulties then they should contact their specialist dental accountant straightaway DT ‘ Depending on the tax payer’s circum- stances, H M Reve- nue & Customs may agree time to pay where it believes that somebody is genuinely unable to pay’ About the author Nick Ledingham is a partner in specialist dental accountants Morris and Co and Chairman of the National Association of Specialist Dental Ac- countants.