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Client WANTS to make payments on account

My client is one half of a husband / wife partnership, and when his 2010/11 tax return was filed the previous accountant checked the box to have tax collected through his tax code if less than £2,000 tax was owed.  This was in error as my client has a strong preference to pay his taxes through the normal payment on accounts and final balancing payment.  The client paid the final balancing payment from 2010/11 which now shows as an overpayment on his HMRC statement.  The wife's tax return was done according to their instructions without the box being ticked, so she is still making payments on account.

The client has contacted HMRC by phone and asked if he can revert to paying the tax as normal, instead of having the 2010/11 balancing payment collected via his tax code (he has some pension income), and then being hit by a large payment for 2011/12 when the tax return is filed, but was told he couldn't do so.

Any ideas?  Is it worth writing to HMRC to formalise the request?  Its so unusual to have a client be upset because they haven't been allowed to pay tax!

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By zebaa
31st Mar 2012 14:11

Just pay it online

If you can quote a ref number then you could pay HMRC via an Internet bank transfer. However, it may then take some letter writing to get it matched up.

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31st Mar 2012 14:32

Thanks - do you know if there is anything we can do to get the tax code corrected to prevent the 2010/11 balancing payment being collected through the tax code?

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31st Mar 2012 15:16

Keep calling until you get somebody with some sense. If HMR&C can transfer a liability from a code to the SA statement then they can sure has hell do it when a client requests it, and I have got them to do so in the past. Sometimes you just get somebody who refuses to do it so that they can hit their quota for calls dealt with.

If the client wants to pay their 2011/12 liability in installments then they can do so; the payments will just show as unallocated credits until the 2012 return is submitted.

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By ACDWebb
02nd Apr 2012 08:57

How about

amending the return and ticking the box?

Well you never know, it might work.

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By K81
03rd Apr 2012 16:19

HMRC software allows for payments on account to be reduced down to nil but does not allow for them to be re-instated once this has happened.

There is nothing to stop your client sending payment to HMRC via cheque, with his UTR on the back so that it will tie up to his record.

I would phone HMRC again to get them to remove BP from tax code as payment is on the statement.

 

 

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