N.I. contributions owed

[hector-go-go]

morning everyone
I am full time self employed but my earning for the past 3 years are below the tax threshold, so I'm barely getting by.
I have missed the payments due as I am just about surviving & now have a bill for around £450 which I cannot pay.
Can I arrange a payment plan with the HMRC??
Can I claim a "holiday" frosm payments whilst I get back on my feet.
Do I have any other options?
Any advice would be greatly appreciated as finding this money in a lump in Jan is virtually impossible for me
rgds
Hector

[labman]

Re: N.I. contributions owed

I think your best bet is to phone HMRC and explain the situation. While they have to stick rigidly to the rules, they will do all they can to help if they can.

[strangewayofsavin]

Re: N.I. contributions owed

Hi hector, firstly there are 2 types of self employed, there are those like the electrician/bricky who own there own company, who give a quote for the job in hand, or run their own company who decide what they work for and how much the job will cost, these people provide all the tools and all the labour.
Secondly there are those that are self employed for tax purposes i.e you provide the van they provide the work, pay you a sum, and you pay your own income tax and NI.
If you are truely self employed, then the tax burden is solely yours, most inspectors will give you the grace to pay over a 4 month period for the first time at no extra expence, being selemployed for tax purpose I would sugest get a good accountant, the extra you pay is usually lost in the amount these accountants save, especially if you are a home based business

[Bill-K]

Re: N.I. contributions owed

If you are below the tax threshold - and have been for 3 years, then I can't see how you can owe Her Majesty £450. Is this in Income Tax - or some other taxation ? I think they need to explain this. Is it NICO contributions ? You can claim exemption from those, if you are below a certain limit.

[strangewayofsavin]

Re: N.I. contributions owed

P.s, if the demand is for over 6 years ago, they cannot legally chase you through a court of law, but the government can deduct the short fall from future pensions/benefits.