Share this content
16

2018/19 payments on account ignored by HMRC.

Tax return for 2017/18 shows 2018/19 POA but HMRC's system doesn't pick them up.

Didn't find your answer?

Client paid the January 2019 POA per his filed tax return. As POAs not picked up by HMRC, they refunded the client. What should the taxpayer do? Does anyone have any experience of this?

Replies (16)

Please login or register to join the discussion.

Caroline
By accountantccole
25th Feb 2019 11:15

Is 2018/19 missing entirely on your screens?
I've had the same on a couple - known error that they are supposed to be fixing!

Thanks (0)
Replying to accountantccole:
avatar
By Maslins
25th Feb 2019 11:18

accountantccole wrote:

Is 2018/19 missing entirely on your screens?
I've had the same on a couple - known error that they are supposed to be fixing!


Yes we had this on one client recently. Client queried it mainly as we'd told them to make a PoA, but their HMRC portal suggested nothing due.

Frustrating as we wasted time assuming HMRC had for some reason de-registered the person for self assessment, trying to figure out why they might have done that.

We called HMRC, they basically advised nothing was wrong, just a visual glitch. So yet another thing where you can't rely on what you see in the HMRC portal.

Thanks (1)
Replying to Maslins:
By SteLacca
25th Feb 2019 11:26

Yes, just a visual glitch that's now into it's second year.

For those clients who affected by this for 2017/18 POAs, I waited until 31 January to file their Returns, and will raise interest objections with regards to POAs should interest be added, though from a conversation with HMRC, it's unlikely any interest will be charged provided the total balancing payment (including the missing POAs) was paid by 31 January.

Thanks (0)
Replying to SteLacca:
RLI
By lionofludesch
25th Feb 2019 11:43

SteLacca wrote:
.... though from a conversation with HMRC, it's unlikely any interest will be charged provided the total balancing payment (including the missing POAs) was paid by 31 January.

I wouldn't rely on that conversation.

Nor would I be surprised if the DMB boys popped up on the doorstep.

Thanks (0)
Replying to lionofludesch:
By SteLacca
25th Feb 2019 14:58

lionofludesch wrote:

I wouldn't rely on that conversation.

Nor would I be surprised if the DMB boys popped up on the doorstep.

I don't rely on it, hence preparing for objections. I don't imagine DMB showing up. It's all been paid now (as a single balancing payment on Jan 31st)

Thanks (0)
avatar
By Kaylee100
25th Feb 2019 12:04

I haven't but on chatting to the agent helpline about Class 2 issues (of which I have had a lot) they said that, the Marriage Transfer Allowance and the non population of POA are causing them the greatest headaches currently.

Thanks (2)
Replying to Kaylee100:
Tornado
By Tornado
25th Feb 2019 12:42

(In sarcastic mode and falling around on the floor laughing) How can anyone take HMRC seriously when they tell us that they want to have the best digital tax system in the world and yet they are still unable to deal with the basics.

I have experienced both of the OP problems plus a lot more, particularly exclusions where the HMRC software is simply incapable of calculating tax liabilities correctly.

As of last week, only 16,500 businesses had signed up to MTD for VAT out of some 1.2 million for whom this will be mandatory as from 1st April 2019. Mel Stride seemed to think this was good.

HMRC are living in a dream world, but are about to be woken up very abruptly. Perhaps they will finally admit that MTD needs to be delayed and a more structured approach followed, particularly in relation to consultation with those that really know what is what .... Accountants on the ground who are dealing daily with SME's.

What idiot decided to introduce MTD based on taxes. The introduction should have started with large businesses covering all aspects of taxation, then medium size, then small size and then micro. This would have given HMRC valuable experience of the whole integrated digital tax structure and then gradually improved the system as they went along. By the time SME's were reached, several years later, the systems would be working better and SME's would have had several years to adopt the ideas and smoothly join the MTD system.

The current idea of expecting businesses to comply with the impossible, with guns held to their heads is never going to work and the sooner the Government accept this, the better.

I do have a sneaky giggle every now and then about those MP's and Lords who have businesses that will fall within MTD for VAT rules. How are they going to cope with this and BREXIT at the same time?

Thanks (5)
Replying to Tornado:
avatar
By Kaylee100
26th Feb 2019 12:54

Don't laugh at the Lords - they did their best!

Thanks (1)
Replying to Kaylee100:
Tornado
By Tornado
26th Feb 2019 13:10

Kaylee100 wrote:

Don't laugh at the Lords - they did their best!

Yes they did, and I do acknowledge that.

I think perhaps they will actually get the last laughs as this farce draws towards the final curtain.

Thanks (2)
By CazzyT
25th Feb 2019 12:52

Just one of the many annoyances.
Fortunately not many of ours actually had the money repaid, it just sat on the account as an overpayment. A quick call to the helpline - they know it is an issue - and it is sorted.
Working in that call centre must be a miserable job!!

Thanks (0)
avatar
By suelight
26th Feb 2019 10:53

Morning all. Thanks for your replies. Not an isolated issue but hard to find any guidance on HMRC website.

Thanks (0)
avatar
By CDS
27th Feb 2019 10:32

You might want to sign up to the HMRC Agent Forum where this matter is the subject of a long thread including HMRC responses.

Thanks (0)
avatar
By hbattrick
27th Feb 2019 10:47

Following numerous calls with HMRC regarding various clients, one of the call centre staff advised me of their temporary procedure which is currently in place.

-For those clients who have paid their POA (and hadn't been repaid), they would reinstate the POA on their system.

-For those clients who had not paid (or repayments already made) their advice was to leave it off HMRC's systems and the balance would become due in January 2020. They advised that no interest would be calculated as their system did not register this as late.

We had a couple of clients where this happened with POA's for 2017/18 which we left and no interest or banging on doors occurred.

Also not all call centre seemed to be aware of this policy but it was about 2 weeks ago so fingers crosses it has been circulated thoroughly.

Thanks (1)
avatar
By Mister E
27th Feb 2019 11:01

The agent forum confirmed what hbattrick has said, if they are not there and not paid, or have been repaid, you can leave the system as it is.

With a warning to the client that the January 2020 payment will be higher than usual.

I spoke to HMRC this morning for a client who had paid and not been repaid and they soon reinstated the POA on the phone, so looks the message has got through.

Bit of a mess though, and this is the second year it happened.

Thanks (1)
avatar
By mcgalvin
27th Feb 2019 12:26

Yes, I have had the same problem. If you phone the agent helpline they will correct it for you. There was a glitch in the HMRC software

Thanks (0)
Replying to mcgalvin:
By SteLacca
27th Feb 2019 12:52

A glitch is a short lived and unexpected error. This, on the other hand, is a fundamental cockup that's been going on for over a year.

Thanks (1)
Share this content