Claim to reduce

My client has a substantial amount of tax payable on 31 January 2013. About three-quarters of this relates to his payment on account for 2012/13.

He has serious cash flow difficulties but cannot realistically expect time to pay because he has spent the money rather frivolously – I gather he had a very good Christmas.

He has asked me what would happen if he advised me that his 2012/13 tax was expected to be basically nil due to reductions in dividends and profits and made an SA303 claim to reduce.

He says he could then review the position and potentially realise he was in error later this year when he expects to have funds available to settle the payment on account and at that point amend his claim and pay up.

I have warned him that HMRC can refuse to accept a claim to...