Self Assessment - payments on account.

John_Pierpoint

A quick question:

At what level of unpaid tax does HMRC give up on collecting payments on account and settle for the payment of the underpaid tax after receiving the Self Assessment return?

[I remember this coming in in the late 80's/early 90's with a value of £500 if I remember correctly]

jennifernil

It seems to be £1000 now.

jennifernil

https://forums.moneysavingexpert.com/discussion/2805654

This may be of help

John_Pierpoint

Yes it looks like HMRC has decided that I will be paying less than 1000 GBP based on my 10/11 tax return when they get it.
So that is why I have not been sent a July payment reminder.

barak

John_Pierpoint wrote: »

Yes it looks like HMRC has decided that I will be paying less than 1000 GBP based on my 10/11 tax return when they get it.
So that is why I have not been sent a July payment reminder.

John_P - I'm sure you are right, but to double check, if you log in to your account at HMRC, it should show the date by which any future payment on account is due.

jennifernil

OH, for some reason, is unable to get registered to file on-line. For the current POA year (10/11) he applied to reduce his POAs as his untaxed income has fallen significantly. HMRC agreed on 2 x £450, but in fact his amount due for 10/11, due to currency fluctuations, worked out at £1010.40. He just sent in his return last week.

I have just sent the £560.40 to HMRC (£450 + £560.40 = £1010.40). He never got the usual demand for 31st July, which I thought was odd. So you never got it either it seems, John. Hmmmm.

No doubt they will be looking for a few pence interest now!

As over 80% of his tax is paid via PAYE, he should not need to make POAs next year.

chrismac1

Perhaps the HMRC posters could confirm this, but I believe HMRC use a random number generator to decide who gets sent a statement. I have two clients who both owe exactly the same bill - just over £2,500 each - by virtue of being in partnership. He got a statement, she rang me up to ask what was going on - no statement for her.

jennifernil

This is the first time OH has not received a statement/demand for his second POA.

taxing

Have heard today that a fair number of statements were overlooked and are coming out now....apparently, those getting their statement late won't be charged interest if they pay the tax due within 30 days of receiving the statement.

Regards