Last week HMRC provided an update on how they are going to handle the missing 2018/19 payments on account. The problem being that some 2017/18 tax returns have been incorrectly processed resulting in the two 2018/19 payments on account not being created in the taxpayer's HMRC account and therefore being omitted from Statements of Account issued to the taxpayer.
Through its Agent Forum HMRC advised that [and I summarise] only if the first payment on account had been received by HMRC by 31 Jan 2019 would the two missing payments on account be created. Otherwise, the missing payments on account would be wrapped up into the 2018/19 balancing payment leading to a single payment due on 31 Jan 2020. From snippets here and there on AccountingWeb we learn that HMRC has had to divert staff from SA tasks to work on Brexit, creating all the missing payments on account must be one of those SA tasks.
The 2018/19 SA tax calculation (and tax return software) will need to be adjusted to allow for a new category of taxpayers whose 2018/19 payments on account will be merged with their 2018/19 balancing payment. The software will require a user-option to merge the two payments on account into an extra-large balancing payment.
There is also the issue that HMRC is over-riding the law as to when tax is payable (some taxpayers will not have to pay any 2018/19 tax until Jan 2020). Was this a suitable way to advise taxpayers and agents of something so significant ?