Ring them again and explain that the amount that had been agreed is now unmanageable - see if you can change the amount you are paying - as HMRC would rather you pay what you can afford.
However you have 12 months from 31/10/2010 (which is 12 months from the statutory deadline of the 2008 return) to amend your 2008 return.
The legislation is "Section 9ZA
|2.40||Similarly, the taxpayer may wish to amend the information originally entered in the tax return (for example to replace a provisional figure with a final accurate amount), and to make corresponding amendments to the self assessment. The taxpayer is allowed to notify and make any such amendments at any time from sending in the return up to 12 months following the statutory filing date.|
This means you could change the 2008 tax return to in turn reduce the bill - so I would get on and request the amendment be made - in writing as soon as possible.
Ok so what to amend you want the tools and car and van to be brought into play
If all of the tools were bought between 06/04/2007 to 05/04/2006 - then you can claim the Annual Investment allowance for them so in your letter asking for the 2008 return to be amended you want to ask for Annual Investment allowance of all the tools amounting to £4580
The car was bought for £5000 - but is used for private and business and was bought early 2009 - so this is going to come into play for the 2009 Tax return
We need to look at what business mileage and what private mileage is undertaken so I can apportion a split percentage for business use -- but for now assuming its a 50/50 split -
Cost of car 5000
AIA 20% 1000 (you can claim 50% = £500 Capital Allowance)
Value to carry forward 4000
For the van if this cost £1000 and used solely for business and again I will assume this is for this tax year just gone (06/04/2008 to 05/04/2009) then you can claim the full £1000
So to recap
1) Write to HMRC and ask them to amend the 2008 tax return to allow Annual Investment allowance of £ 4580 (again assuming all tools were purchased between 06/04/2007 and 05/04/2008) This will reduce the tax bill due that you are paying now - phone the Debt Helpline tomorrow and advise them you no claim was made for the tools and you are sending in a letter to ask if the 2008 tax return can be amended - and in meantime that the amounts being asked for are crippling you, could they be reduced to a more manageable level
2) File your 2009 return as soon as possible - with income and all business expenses
some you may not have thought of are - does your partner advertise/use internet for his business - (pricing jobs etc) if so we can have a play with internet charges, home telephone, advertising, actual motor expenses - has he claimed for the right amount of MOT,repairs, petrol,oil diesel etc does he pay for materials - have these been shown - does he hire equipment, try and think of all he spends on a typical job -
Make sure all receipts are kept for all business expenditure and business equipment
In the 2009 return claim for the 20% car under the Capital allowance box £500 and claim £1000 Annual Investment allowance for the van
If the figures I have worked out- or the dates do not correspond as they actually are - let me know and I will rework them for you -
But talk to HMRC - don't struggle and miss a payment, they would rather you pay what you can and stick to payment plan than miss and worry - and make things worse.
And you ask as many questions as you need - its a tough time for many in this present financial climate - and you are not putting on me - we are here to help