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Will HMRC Pay Me Interest?
Comments
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Are you quite sure about that?
The way you have explained it makes it sound like the final position (ignoring payments you have made) is as follows,
1st POA for 2025/26 £1088.18
2nd POA for 2025/26 £206.35
Balancing Payment for 2025/26 £881.83
Which seems highly unlikely, more more likely that that the £881.83 is going to be collected via your 2027/28 tax code (which would be explained on your Self Assessment statement of account).
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Ok that makes no sense to me.
You originally said your 2nd POA had been reduced to £206.35, so judging by other informative posts on this thread I assumed your 1st POA had also been reduced to £206.35 (and presumed you must have already paid some of your 25/26 tax liability by PAYE) with a balancing payment due in Jan 27.
You are now saying both your POA have been reduced to £1088.18. If that was the case I can't see how you would have nothing to pay in July, as you would only have a £206.35 credit from the 1st POA, leaving £881.83 to be paid to bring the 2nd POA up to £1088.18 also. Something doesn't add up.
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I agree either way this.
The July payment on account must be the same as the first one in January.
Either you misinterpreted what was said or you spoke to someone who gave you the wrong information
If yiu have submitted your return then you can check your statement of account ( in your personal tax account online) to confirm how much is due in July.0 -
Tax return submitted hence why the figures have been amended. My statement of account says exactly what I have described and was explained to me by the SA agent. I have £0 to pay in July 2026 and the balance in January 2027.
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Nothing is going to be collected by my tax code as I asked for it not to be and my statement of account confirms this.
Whether it makes sense or not that is what is happening. I’ve paid £1294.53 in January 2026 and will pay £881.84 in January 2027 which covers my tax liability of £2176.37 as per my 2025/26 tax return. My July 2026 2nd payment on account of £1294.53 has basically been reduced to £0 covered by the £206.35 credit and the balancing payment due now in January 2027.
Perhaps it’s down to there being no POA for 2026/27. I have no idea but that’s what is happening.
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Can you provide a screenshot of your Self Assessment account showing this as it just doesn't make any sense. Not based on the past 30 years of Self Assessment anyway.
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Wht is there no poa for 26/27?
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2024/25 tax return figures.
Current statement on SA account
I suspect this has happened in an unusual way due to my initial 2025/26 tax return forgetting to tick the box saying I didn’t want tax owed to be coded out. I missed it due to using tax software I wasn’t used to. Tax return amended a couple of days later and also contacted HMRC who confirmed that the £881.84 had been removed from being coded out and was returned to SA. I specifically asked if July POA would be amended and was told no as the total amount owing now was less than £1k so would need to paid in January 2027. Confirmed on my SA account as shown.
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Tax owed for 2025/26 doesn’t warrant any POA for 2026/27 I suppose.
In the 22 years I’ve been doing SA I’ve never had any POA apart from this one. A bit of research last year showed that as long as tax paid was 80% or more of tax due then no POA was needed. My 2024/25 tax return crept over that limit.
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Yeah, that means the (reduced) second POA was originally going to be collected via your 2027/28 tax code.
But then you have asked for that not to happen and HMRC have created a stand alone charge as I don't think they can undo the transfer of the POA to the tax code (they can stop your tax code being impacted, it's reinstating the original POA as though nothing had happened that I don't think is possible).
Not sure why they wouldn't have used a due date of 31 July 2026 for that replacement charge of £881.84, but that's to your benefit.
When the £206.35 credit is eventually allocated to the tax now payable on 31 January 2027 I would expect you to get a little bit of repayment supplement (interest) credited to your account.
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