Payment on account query

dell12

Ontop of my usual PAYE earnings, last tax year (20/21) I received a £50k dividend from my father's company. I completed a self-assessment form and paid the tax due.

Because the tax due on the dividend was over £1,000, HMRC asked me to make a payment on account during this (21/22) financial year. I declined to do so, as it was my father's expectation that no dividend would be paid this financial year. HMRC accepted this no problem.

Subsequently, however his company has been more profitable than anticipated and he has paid me another (smaller) dividend. I will pay the tax due via my self-assessment in January, however I believe I will be charged interest on the tax due this given I failed to make a payment on account.

My question is whether anyone has had any success in appealing this, on the basis that they received income that they were genuinely not expecting to receive?

Many thanks.

[Deleted User]

You are correct in that you will be charged interest on the amounts originally due by way of payments on account. 

I have never come across grounds for appeal against a choice made by the taxpayer. In claiming to reduce the payments on account you have signed the following declaration:

I understand that

• if the payments on account finally due are greater than the amounts paid, interest will be charged on the difference

• any false information given may result in financial penalties. 

Not sure what the grounds for appeal are.

dell12

Much appreciated - I will cough up the interest. Payment on account feels a little tough on someone with a volatile income.