Inland Revenue Payment On Account question
Discussion
Usually around this time of year I get a letter from the IR asking me for my second payment on account for next year's tax bill.
In previous years I have overpaid in Jan so I've not had to do anything.
This year I haven't overpaid, but have received no letter (neither has my wife who is in a similar situation, but she did overpay so if they do decide she owes, the money is already there).
Logging onto the IR portal it tells me nothing is due, but I still have a funny feeling that on 1st August it will tell me that I am overdue x amount and also need to pay a fine.
Can anybody allay my fears?
In previous years I have overpaid in Jan so I've not had to do anything.
This year I haven't overpaid, but have received no letter (neither has my wife who is in a similar situation, but she did overpay so if they do decide she owes, the money is already there).
Logging onto the IR portal it tells me nothing is due, but I still have a funny feeling that on 1st August it will tell me that I am overdue x amount and also need to pay a fine.
Can anybody allay my fears?
HMRC have cocked up big time this year and failed to send out Statements of Account to millions of people for their July payment. You should get one of these statements even if the amount due tomorow is Nil.
Just because you cleared what you needed to pay by 31 January 2011 does not mean you don't have anything to pay on 31 July. However, the HMRC website does seem to be indicating that you do indeed have nothing to pay.
The worrying thing for me is that the Self Assessment system is based on the assumption that the taxpayer knows and fully understands how to work out their tax liability for any given year and also, based on that liability, be able to work out what Payments on Account are due for the next tax year.
If you are depending on HMRC to tell you what you owe, you could be in for a nasty surprise.
Just because you cleared what you needed to pay by 31 January 2011 does not mean you don't have anything to pay on 31 July. However, the HMRC website does seem to be indicating that you do indeed have nothing to pay.
The worrying thing for me is that the Self Assessment system is based on the assumption that the taxpayer knows and fully understands how to work out their tax liability for any given year and also, based on that liability, be able to work out what Payments on Account are due for the next tax year.
If you are depending on HMRC to tell you what you owe, you could be in for a nasty surprise.
Thanks Eric - that's set my mind at rest.
Trouble is, the web site wording is a bit odd (to me at least) - it talks about payments "becoming due" on 31 Jul. Now, to me that indicates a start time to pay it, but after rereading it just now, it becomes clear that it is due now, with the deadline on 31 Jul
Anyway, all paid now - explains about not receiving the statement of account. Will they be sending them out late, do you know?
I wonder if they will make allowances for people who didn't realise...
Trouble is, the web site wording is a bit odd (to me at least) - it talks about payments "becoming due" on 31 Jul. Now, to me that indicates a start time to pay it, but after rereading it just now, it becomes clear that it is due now, with the deadline on 31 Jul
Anyway, all paid now - explains about not receiving the statement of account. Will they be sending them out late, do you know?
I wonder if they will make allowances for people who didn't realise...
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