Problems with HMRC systems earlier this year could apparently mean that some UK taxpayers may not receive the tax demands they are supposed to get by the end of July, according to the Association of Taxation Technicians (ATT). This is not the good news some may take it as. Those affected will still be required to pay their total 2018/2019 self-assessment tax bill by the end of January 2020 and ATT is advising them to make sure they set the money aside to do this.
In January 2019, the ATT says it became apparent that HMRC systems had not always processed payments on account for 2018/19 correctly and that a number of taxpayers’ self-assessment statements did not include demands for the first payment on account due in January 2019. Unless affected taxpayers contacted HMRC to correct the position at the time, these individuals will not receive a demand in June or July for the second payment on account due by 31 July 2019.
Jon Stride, Co-Chair of the ATT’s Technical Steering Group, said: “While it might be tempting to think that not receiving a tax demand is a good thing, ultimately all affected taxpayers must pay their 2018/19 bill in full by 31 January 2020. If a taxpayer does not make any payments on account during 2019, then their tax bill in January 2020 could be significantly larger than they are expecting and could come as quite a shock. We are concerned that taxpayers may not realise what has happened and might not set aside enough money to meet their full tax bill in one amount next January.”
HMRC have advised that if no 2018-19 payments on account have been demanded by them, then the taxpayer does not have to do anything and they will receive a demand from HMRC for the full amount of tax in January 2020.
