Taxpayers could pay interest on incorrect payments to HMRC

Written by Oliver Wade

Self-Assessment taxpayers could potentially be subject to late payment interest due to incorrect payment reminders they have received from HM Revenue & Customs (HMRC), according to leading accounting, tax and advisory firm Blick Rothenberg.

One of the firm’s senior managers, Stefanie Tremain, highlighted that there is currently an issue with the revenue’s software “which means some taxpayer accounts are not showing details of payments on account due and subsequently, the payment reminders they receive from HMRC may be incorrect”.

Tremain emphasised that, although this is HMRC’s error, if the taxpayer does not make their payment on account on time, they could be subject to late payment interest on the amount unpaid of 3.25 per cent.

Many taxpayers in Self-Assessment are required to make tax payments by 31 January. The amount being paid could consist of a balancing payment for the previous tax year, and the first payment on account towards the tax due for the current tax year.

“Taxpayers will understandably rely on the information sent to them by HMRC, but for peace of mind it's important that they double check the amount due in January 2019 with their accountant, or for those without an accountant, they need to check their completed 2017/18 tax return,” Tremain added.

“It is unclear how many taxpayers are affected, or whether HMRC will be contacting those who are, but with the payment deadline fast approaching it is hoped that this will be rectified as soon as possible.”

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