HMRC Payment on account - do they issue reminders?

[clockworks]

Just had my self-assessment figures back from HMRC. For the first time, I will have to make payments on account for the current tax year. Apparently this is because I am now full time self employed (no PAYE employment), and my projected tax bill will be over £1000.

It's relatively straightforward to settle once a year - receive paperwork, pay bill. Nothing to forget, as long as it's paid as soon as the bill arrives.

I guess the first payment on account (due Jan 2020) will be easy to remember, as it will be on last year's bill when it arrives.
Will I get a reminder to pay the second payment, due July 2020?
If I forget to make the second payment, is there a penalty?

[SS2.]

Around May (IIRC), I receive an email from HMRC telling me I have a new secure message - this is the reminder for the PoA amount which is due in July.

I've never been late with a payment so can't be 100% but, as I understand it, HMRC reserves the right to charge interest on payments which are overdue by more than 30 days.

[essayer]

SS2. said:

Around May (IIRC), I receive an email from HMRC telling me I have a new secure message - this is the reminder for the PoA amount which is due in July.

I've never been late with a payment so can't be 100% but, as I understand it, HMRC reserves the right to charge interest on payments which are overdue by more than 30 days.

They do send regular reminders and charge interest but you'll get away with a few months if you need to

[Stay in Bed Instead]

I get a letter every six months demanding money.

[clockworks]

Thanks for the replies, good to know that they will send a reminder by post. Presumably they send an email if you do your return online?

Finding the money to pay the bills shouldn't be a problem, as I have been paying into a savings account by monthly standing order to cover it. I just need to put this payment up every now and again as profit increases year on year.

[Stella Tortoise]

I don’t really enjoy paying tax upfront but it does make the end of year payment less onerous.

[Big E 118]

clockworks said:

Thanks for the replies, good to know that they will send a reminder by post. Presumably they send an email if you do your return online?

They definitely send two letters per year pre payment dates.

I can't recall ever seeing an email but my accounts are done by my accountant so may go to them.

[Eric Mc]

HMRC has been reluctant to use e-mails for the obvious reason that so many supposed HMRC e-mails are actually fake and attempts to scam people.

[SS2.]

I get emails from HMRC advising me that I've been sent a secure message.

I then have to log in to the HMRC portal to view it.

[MechMovement]

Slight thread jack but i am in the following predicament:

Have a sizeable payment on account due but for 19/20 will be earning significantly less (hence less tax liability)

Is it just a case of filling out the form to reduce my payment on account or easier to just stump up and await a refund next year?

[SS2.]

There are procedures in place where you can notify HMRC that this year's tax bill is likely to be less than last year's - you can do this by post, or online by logging in to your Self-Assessment account.

Personally, I wouldn't knowingly overpay and await a refund.

[Eric Mc]

MechMovement said:

Slight thread jack but i am in the following predicament:

Have a sizeable payment on account due but for 19/20 will be earning significantly less (hence less tax liability)

Is it just a case of filling out the form to reduce my payment on account or easier to just stump up and await a refund next year?

You can do both. If you want to reduce the Payment on Account, the form you need is called an SA303. You can download one from HMRC, complete it and send it to HMRC by post or you can apply to reduce your Payments on Account on line through your HMRC Government Gatweway.

[thebraketester]

Payment on Account can go and fk itself...... that is all.


Nothing further to add..


:-)

[essayer]

thebraketester said:

Payment on Account can go and fk itself...... that is all.


Nothing further to add..


:-)

It’s annoying the first year you move from PAYE for sure, and has no doubt caught out many who were not expecting it

After the first year, it’s not too bad. No different from PAYE really.

Better than HMRC seeing all your financial matters month by month and sending monthly bills

[blearyeyedboy]

MechMovement said:

Slight thread jack but i am in the following predicament:

Have a sizeable payment on account due but for 19/20 will be earning significantly less (hence less tax liability)

Is it just a case of filling out the form to reduce my payment on account or easier to just stump up and await a refund next year?

I have done this and it was fine.
Best in mind that if you underestimate your earnings for the following year, they will charge you interest on the amount you didn't pay in advance from the date it would have been due. Be careful with your calculations, but absolutely don't leave a big sum with HMRC for them to eventually refund you. You just don't need to.