My assistant called the agent's helpline for a client and asked to reduce the July payment on account to nil since the amount showing per the draft tax return is less than the amount paid in January.
They said no, it is not possible to adjust this now since the January payment has been paid. So computer says No.
I will call back in the morning to speak to someone else. Just need one figure to submit the return.
Anyone else had this? And I am not amending last year's tax return to claim a reduction now.
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Somewhat at odds with their own guidance. re having until following 31 January. Just take figure paid in Jan, divide by 2, reduce both payments to that sum.
https://www.gov.uk/government/publications/self-assessment-claim-to-redu...
"Details
You can apply to reduce the amounts you’ve been asked to pay if:
your business profits or other income goes down
the tax relief you are entitled to goes up
You can:
use the online service (sign in or set up a Government Gateway account)
fill in the postal form on-screen, print and post it to HM Revenue and Customs
You must claim by 31 January after the end of the tax year - for example by 31 January 2017 for the year 2015 to 2016."
You must claim by 31 January after the end of the tax year - for example by 31 January 2017 for the year 2015 to 2016."
I've never, ever had this thrown back at me as a barrier to a claim.
If I did, I would apply to reduce by £0.01 and then amend my claim when the facts were available.
You must claim by 31 January after the end of the tax year - for example by 31 January 2017 for the year 2015 to 2016."
Just wondering like, but is this enshrined in law or is it merely some indication that you have to apply by 31st January if you don't want to pay the January instalment ?
No idea, I merely cut and pasted from HMRC's wonderful, impartial, guidance.
There is a logic in that after the following 31 January all payments on account are mainly non events as the full balance of tax for the year will now be due, accordingly changing a POA after this date would likely be pretty pointless (However maybe relevant re calculating interest on sums paid late)
It's nonsense.
What is true is that you can't reduce just the July payment. You have to reduce both.
Try reducing both payments by half - or better still - to zero.
Do it online to cut out the gormless middleman.
Or, if you like the idea of listening to carp music on the telephone, simply ring again until you get the answer you want.
Mind you, if you're so close to submitting the return, why are you wasting your effort ?
Thanks both I have done it online. I always called before.
I don't submit returns until my bill has been paid so it may not go in by 31 July and I don't want clients to get debt collection letters from HMRC. I also have a number of clients where the tax is known but there is a bit of info missing so can't send the return to client or raise my bill and want to tick it off my list as a bit snowed under.
Just reduce the POA to 1/2 your estimates and there will then be an overpayment from POA1 that will be set against POA2 with a net credit on the SA account that the client can claim as a refund when you finalise and submit the return.
[EDIT] I should probably have added, make the reduction having discussed and got the clients approval to do so...at least that's what I do rather than just make the change.
As others have mentioned you cannot reduce just one payment on account - just work out the tax divide by 2 & reduce both payments on account to that figure.
Curious, if the Return is at draft stage, is it simply awaiting sign off, and could feasibly be filed by 31st anyway?
If the return is not filed and the reduced payment is made then the client gets a letter from debt management so best to avoid. I have quite a few of these and don't think they will all be filed by 31 July since I don't file until I have been paid so have reduced the POA.
I filed a client tax return on 25 May showing an overpayment of around 650.00. Client received a refund of about 250.00 so I telephoned HMRC to be told that the july poa had been deducted from the overpayment. Something to do with the computer. I then applied on line for both poa to be reduced and the balance of the refund was paid to my client in June