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I know that this is unacceptable BUT software always tells you what you need to pay by the end of January and also by the end of July, So payments can be made in good time.
However as the "glitch" is the HMRC software I hope that fines are not forthcoming
As Rebecca opens , this POAXIT issue is just one of a number of HMRC's computer errors ; mistakes which recur and seemingly incapable of being resolved within a reasonable timescale.
Just imagine the furore , compensation claims and head rolling if this happened within a plc , professional practice etc.
Yet the Revenue carry on regardless and get away with a third rate service pretending MTD will answer all their prayers. Too late ; the former Inland Revenue is now in its worst managed state in history.
.........clearly HMRC have no idea how to make tax digital. God help us all as we launch into MTD. I have never felt more like a lemming than I do now !
This happened to me personally but I paid what was due in January and nothing has been refunded to me. I wonder if HMRC will give me interest on the apparent overpayment.
I haven't got the time to check out all my clients but if they contact me I tell them to pay what's due and not what HMRC say is due. My guess is that most will just pay the lower amount demanded without querying it.
I wonder if HMRC have included this in their tax gap figures along with all the class 2 NICs that their computers didn't want to collect.
I also wonder where the next taxpayer giveaway will be. Could it have something to do with VAT?
In my practice this seems to be affecting non self employed cases, mainly those with PAYE employment or pension income rather than the self employed. To date I have located 14 cases out of 267 potentials which is still 5%, small but not insignificant. I have had the payments in account reinstated but was unable to prevent a couple of repayments and the inevitable interest charge which is now being appealed. The worst thing about this is that it is the second year running this has happened and it means yet more work for us to data mine who is affected, telephone HMRC and then make sure payments are made or, if they do not pay, that at least they know that they will have a large bill coming in January 2020. HMRC staff I have spoken to also seem unaware that interest will not be charged so that is something to watch.
And these are the civil servants who run the Government and decide to cancel preparations for No Deal Brexit.
You wouldn't mind so much if they were efficient, understood what they are doing, did it properly and timeously (to use their word) and thought further forward than the next sound-bite.
I remember the days when the Inland Revenue were helpful and actually knew what they were doing then they brought in computers and clever tax planners who thought they knew what they were doing but don't. So now we have a tax system that few people understand. Did I hear that the CIOT pass rate had dropped to about 40%? If the specialists cannot cope how on earth is Joe Public supposed to do so?
"this adjustment can’t be done if the taxpayer has not, in fact, made a POA for 2018/19"
When I've called I had HMRC, staff have successfully reinstated POA for 18/19 before it has been paid as they looked at the tax return and agreed POA should be made for those clients.
Am I a rare and lucky case?
I have come across this with my own daughter but decided to do nothing about it and she just made the payment eventually, when demanded. No interest charged.
What I find interesting is that HMRC don't appear to back-up their records. ALL competent people do this, so why don't they?
HMRC are getting all sorts of things wrong. My self-employed son was asked to pay non-existent student loan repayments and charged interest for non-payment. He paid up, thinking he must have made a mistake. Now he has to try to get it back ! They are just making more work for their "customers" as well as for themselves.
SA has been with us since 1996. At the time it was such a radical change that I would have expected loads of errors but there weren't any. Why is it that 20 years down the road HMRC's systems can't cope? And at the same time HMRC is forcing through MTD.