Self assessment and reducing payments on account

Bean_Counter

Hi,

I finally got round to doing my 2017/18 tax return a couple of weeks ago. At the end of it is showed me as due payment towards 2018/19, which is usually fine. However the income stream that am liable for the extra tax for does not exist in 2018/19 as my company went bust, so no dividends to account for.

I completed the section to reduce the payment on account to nil but haven't heard back from them since.

So my question is if I do not hear back from them by the 31st should I pay the payment on account for 2018/19 in the hope of getting it back later or not pay knowing that is the correct overall position?

Thanks in advance.

[Deleted User]

No.

You won't hear from HMRC. It is self-assessment.

If you still need assurance, log in to your account. It should say that nothing is due.

Dazed_and_confused

However the income stream that am liable for the extra tax for does not exist in 2018/19 as my company went bust, so no dividends to account for

Although that would be a valid reason to make a claim to reduce your payments on account you also need to remember that ultimately the reason for your tax liability isn't actually relevant when it comes to POA.

So if it turns out you have some tax to pay for 2018:19 the payments on account would be re-instated (each POA being either the original POA value or half the actual 2018:19 liability if this is lower than the POA) and you would be charged late payment interest.