HMRC previously advised of a problem where Payments on Account (POA) for 2018-19 had not been created on the submission of a 2017-18 tax return. The error in HMRC’s system meant that some self-assessment accounts were showing that POA were not required for the 2018/19 tax year. Where this has occurred, a credit will now be showing on the client’s statement of account for the 31st January POA.
We know that in some of these cases individuals or their agent contacted us and POAs for 2018-19 were then set up. For these individuals and if a POA was created on submission, the second POA for 2018-19 will be due on 31 July 2019. Statements of account reflecting this will be issued as normal.
If your client does not receive a statement of account letter in June or July 2019, as no 2018-19 POA have been created, HMRC have confirmed that no payment is required by 31st July 2019. The 2018/19 tax liability will instead be due in full by 31 January 2020, rather than a balancing payment after two POA.
Following this statement by HMRC, it would be beneficial to check your client’s SA accounts and then advise them as to whether a POA is required by the approaching deadline. Where a payment is not due, you should inform your clients of their position and advise accordingly.
Here is a link to HMRC’s confirmation of the current POA position. HMRC Agents Update 72
