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Tax payments not allocated corerctly by HMRC
Posted by Anonymous on Thu, 08/10/2009 - 15:27
I have filed four tax returns via HMRC's free online filing software in May09. The returns have been acknowledged online too.
The tax payments show up on the client's online records too, but as 'overpayments'!
On 'Your account' screen the same amount is displayed as due before 31/1/10.
Looks like the tax payments still have not been matched to the Tax Returns!
Anybody has similar experiences? Should I ring them up? I don't want automatic penalties issued after 31/1/10 when the tax has been paid already in May09!
However
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Have they paid the 2009 balancing payment in May 09?
The system can't allocate payments against amounts that are not yet due. It will instead show as an overpayment as you have described.
Just be careful that some bright spark at the Revenue (or your client) doesn't arrange for it to be repaid.
No there are no payments on accounts
The tax paid IS the tax due for 08/09. No Payments on account apply to these clients.
So I suppose the payments will be allocated after 31/1/10?
Correct
No action needed.
Just to be sure
But it would be worth giving them a call to be sure.
Tax paid early
There may be a good reason why the client paid the 2008/09 balancing payment paid in May 2009. However, I would expect such reasons to revolve around availability of funds or uncertainty abount the payments on account . Even if a tax return was submitted early in May 2009 the balancing payment is not legally due until 31 January 2010. This hold true even if payments on account have been made for the 2008/09 tax year.
As the tax liability is not due until 31 January 2010, any amount paid to settle that liability is not "tax" and will not attract any repayment supplement.
Regards
Jacqui
Tax payments not allocated corerctly by HMRC
I suggest you ring HMRC because this happened to one of my clients. An overpayment in one year and an underpayment in another. The cause was the Tax Payment Reference numbers used. You need to ensure that the Tax Payment Reference is the one that they have advised you to use. When you speak to them, they are usually very helpful and will re-allocate the payments to the correct tax periods. The interest on over/underpayment will follow the payment date not the re-allocation dates so they can reverse any late penalty charges if they had issued that. I hope this helps.