Interest accruing for SA liability collected via DD on 31 Jan

Ayr_Rage

@intalex I paid by setting up the payment from my bank account via the HMRC website, it took me automatically to my banking app and then populated the account details and UTR code.

I did that in November last year.

Before querying with HMRC I called Nationwide and they confirmed it was sent as a Faster Payment on the 31st with all the correct details.

I have always paid by bank transfer and the payment has taken a few days to show on my account but this is the first year OVERDUE has been seen along with accrued interest which disappeared overnight from 4th to 5th.

intalex

Ayr_Rage said:

@intalex I paid by setting up the payment from my bank account via the HMRC website, it took me automatically to my banking app and then populated the account details and UTR code.

I did that in November last year.

Before querying with HMRC I called Nationwide and they confirmed it was sent as a Faster Payment on the 31st with all the correct details.

I have always paid by bank transfer and the payment has taken a few days to show on my account but this is the first year OVERDUE has been seen along with accrued interest which disappeared overnight from 4th to 5th.

Interesting method with a future-dated faster payment, but clearly reflected faster than a good old-fashioned direct debit...

Nomunnofun1

Dazed_and_C0nfused said:

I don't think it's a "glitch", it's simply reflecting the facts.

As of today £x is overdue and accruing interest is being calculated based on the amount overdue and current HMRC late payment interest rates.

Once the overdue amount is paid the actual interest charge will be calculated.  If the due date for payment was 31 January 2025 and the effective date of payment of the payment allocated to the charge is also 31 January 2025 there won't be an interest charge.

It is a little surprising the payments haven't been allocated yet but I guess 31 January will be the busiest day by far for both Self Assessment returns and payments so probably nothing to worry about.  Just yet.

Agreed. I paid my Nationwide credit card bill from my Nationwide current account on 31st January. Left my account immediately as expected but not reflected on my Credit Card account until Monday 3rd. 

DRS1

It is good to know that computers don't have to work weekends.

intalex

Just to confirm the payments on both accounts are now reflecting (effective date 30 Jan for some reason) as of this morning (5 working days later), and there is no interest accrual or charge showing any more.

mybestattempt

intalex said:

Just to confirm the payments on both accounts are now reflecting (effective date 30 Jan for some reason) as of this morning (5 working days later), and there is no interest accrual or charge showing any more.

So, HMRC called for/requested the payment from your bank on 30 January and the payment arrived 5 working days later. 

It seems your bank was tardy here. A direct debit, being a BACS payment, should normally take up to 3 working days to reach the of the account of the payee after the payee has called for the payment.

Ayr_Rage

mybestattempt said:

intalex said:

Just to confirm the payments on both accounts are now reflecting (effective date 30 Jan for some reason) as of this morning (5 working days later), and there is no interest accrual or charge showing any more.

So, HMRC called for/requested the payment from your bank on 30 January and the payment arrived 5 working days later. 

It seems your bank was tardy here. A direct debit, being a BACS payment, should normally take up to 3 working days to reach the of the account of the payee after the payee has called for the payment.

Not a bank issue.

It is all down to the time taken for HMRC to update online accounts.

DDs are normally requested a few days before the account is due to be paid, not just with HMRC.

I have been making payments since 1998 but this year is the first time I have see OVERDUE and the phantom accrued interest that eventually disappears.

Even with this glitch the payments are not being recorded as late and no interest charged.

intalex

mybestattempt said:

intalex said:

Just to confirm the payments on both accounts are now reflecting (effective date 30 Jan for some reason) as of this morning (5 working days later), and there is no interest accrual or charge showing any more.

So, HMRC called for/requested the payment from your bank on 30 January and the payment arrived 5 working days later. 

It seems your bank was tardy here. A direct debit, being a BACS payment, should normally take up to 3 working days to reach the of the account of the payee after the payee has called for the payment.

I believe the 3 working day timescale is from "merchant" request (day 1) to bank settlement (day 3), since on day 2 the payment already appears under pending transactions, so I would expect the funds to be both out of my account and into HMRC's account on day 3 (31 Jan). So I'm afraid it is HMRC who have taken 7 days just to allocate and reflect the payment on the online HMRC account, which I guess has been the case for a while, but then to start showing an interest accrual in the interim in full knowledge that they do take this long to allocate payments...

sheramber

Until payment is allocated to your account  there is no record of the payment having been made. 

If someone got charged interest due to forgetting to pay on time they could complain they were not told about it.
 The system can only be one way or the other and it would appear it is considered  best to advise of interest due for non payment  to all. 

If you know you have paid it will be sorted eventually so why get concerned about it.