HMRC repayment supplement (interest)

TheGreenFrog

I am helping my mother-in-law with her self assessment tax.  I am confused by the payment information contained in her HMRC online account.  She has two entries for a total of about £40 dated 31 January 2024 which are labelled Repayment supplement (interest).  I was thinking that they were credits which would the reduce the amount of her seond payment on account for 2024 tax, but in June she received a statement of account which does not include those repayment supplements and so makes full demand for the July second payment on account.  Are these repayment supplements actual credits and if so when is the benefit received (eg will they reduce the actual YE24 tax bill when the YE24 return has been submitted)?  Many thanks for any info. 

TheGreenFrog

Bookworm105 said:

there is a distinction made between tax owed and balance on the account
when you submit the tax owed (ie tax return) you then need to pay the cash to HMRC, at that point you deduct and balance on your account so you pay then a net amount 

they do not send you a bill for the net amount, although once they have updated your account with the tax return (takes some days0 you can then get a formal statement of account which should be the net owed 

The problem is that the June 2024 statement shows the last payment made (which was in December 2023 shortly after the Y23 return was submitted and covered balance of YE23 tax and first payment on account of YE24), but does not show repayment supplements which in the online account are shown as credited on 31st January 2024 and I do not understand why.  

Dazed_and_C0nfused

TheGreenFrog said:

I am helping my mother-in-law with her self assessment tax.  I am confused by the payment information contained in her HMRC online account.  She has two entries for a total of about £40 dated 31 January 2024 which are labelled Repayment supplement (interest).  I was thinking that they were credits which would the reduce the amount of her seond payment on account for 2024 tax, but in June she received a statement of account which does not include those repayment supplements and so makes full demand for the July second payment on account.  Are these repayment supplements actual credits and if so when is the benefit received (eg will they reduce the actual YE24 tax bill when the YE24 return has been submitted)?  Many thanks for any info. 

That doesn't sound correct to me.

I have seen that exact same situation and the repayment supplement (which is exempt interest 😉) was automatically allocated to the second POA shortly before the second POA was payable.

Maybe it's a timing issue with the June statement?

Can you get her to view the current position online to see what is now shown as becoming payable on 31 July 2024?