Self Assessment: Final Demand - Please help!

Simran

Can your accountant reconcile the figure on the demand with the payment on account shortfall?

Johnny2323

Simran wrote: »

Can your accountant reconcile the figure on the demand with the payment on account shortfall?

I don't pay him much so loathe to trouble him. My income in 07/08 was £3000 more than I'd told them it would be when I claimed for expected reduced income.

Ste_C

The surcharges are fixed and you're warned about them well in advance of the FIRST payment deadline of 31st January.

If you miss it and fail to pay by 28th February then the surcharge automatically kicks in. HMRC don't even have to remind people of this, so be thankful people still get a reminder about it even if they arrive late!

http://www.hmrc.gov.uk/sa/dead-pen.htm#3

It's not "out of order" for them to slap this charge on anyone who misses the January payment deadline.

They seem to have had a lot of issues allocating payments this year though. I know of a lot of people who have received repayments despite their online account showing they owe money.

Mikeyorks

Johnny2323 wrote: »

I thought that they were supposed to send you a statement of what you've paid, what you owe, etc.

How can they do that - in time for 31st Jan - when you file 29th Jan? If you leave it until the very last minute ..... you need to know exactly what you're doing.

As your agent filed for you - then he was advised what was owing. And apparently communicated that to you ... in time for you to pay 30/1. If you look at all your papers from HMRC ... or those you've sent on to your agent .... you will find the surcharge of 5% is well indicated.

But I can't explain the payment reminder for an unspecified sum .... hence why it would be preferable to ring them.

Lol_UK_2

Johnny2323 wrote: »

Apologies if this is in the wrong section. I wasn't sure.
This morning 3rd March - It was dated 16 February - I received a bill from HMRC headed Self Assessment: Final Demand which says "You missed the 31 January payment deadline".

I didn't. I paid all the money I owed for 07/08 on January 30th. However I did expect to owe some money from 06/07 because I claimed for reduced earnings which in the end didn't materialise - I had no idea what this sum would be and I can only guess that this final demand is HMRC's way of telling me, not that it is explained at all.

There are several phone numbers on the letter. Both say they are experiencing high volume of calls and advise to call back at a later date.

On the demand it says "If we don't receive the ammount overdue by 28 February we will add a further 5% surcharge to the amount owed"

1. I didn't recieve this until after Feb 28 so the 5% surcharge seems out of order
2. I am uncertain exactly what it is for
3. I don't have any money to pay it anyway - not even a CC

Any advice anyone can give would be much appreciated or if anyone has had experience with this before.

Had exactly the same dated letter today (I didn't pay by end of January- but only because I don't want to bloody give them anything!!!)- anyway- same thing...it says 5% surcharge if not paid by Feb 28th...got them on the phone and was told don't worry, surcharge will not be charged.
As a side note I'm not paying it all in one go, and that won't incur a surcharge...just usual interest.
Try and speak to them- the lady was very nice about it!!!

nerdycatlover

Hi, Everybody!
Just to say that my DH got one of these letters from the Taxman this morning and managed to get to speak to someone.They tried to confuse him, but basically, it`s an oversight on their part and the money is in fact not due for at least another 45 days. No extra charges have been incurred. This rang a very faint bell because I think I heard a warning about this happening a few weeks ago on Moneybox Live (BBC R4). It put us in a bit of a panic for a while, till I found a phone number for Inland Revenue that wasn`t on the letter. If anyone`s interested, it`s the call centre: 0845 3021431.All other numbers were not answering. I expect all acountants are having a field day.....

Johnny2323

This may be very dumb but I think I know what I've done wrong. My accountant told me how much I owed for 07/08 on 29/1 when he filed my return online. Based on that I made a payment for that sum. I didn't however make a "payment on account" for 08/09. Should he have told me this - his correspondence doesn't mention it at all.
I've had nothing prior to this from hmrc saying how much I owe. I'm in a bit of a hole.

Mikeyorks

Lol_UK wrote: »

As a side note I'm not paying it all in one go, and that won't incur a surcharge...just usual interest.

That's why you don't incur the surcharge ..... because you had a payment arrangement in place prior 28th Feb?

Mikeyorks

Johnny2323 wrote: »

Should he have told me this

Absolutely. As that was also due 31st Jan ...... and would have been included in the figure produced when he filed the 07-08 figures. Unless ..... your total 07-08 liability was less than £500, when payments on account for the following year would not be required.

As my earlier advice ..... ring their payment helpline. They will be able to look at your SA record and give the overall state of play.

minnie123

If you are paying an accountant and you have paid what they told you to then contact your accountant fax them a copy of the letter and they should deal with it. We would deal with it at the practice I work at.