HMRC has been upgrading its IT systems, but things go wrong. It's Payment On Account system had a glitch recently ...
This meant that a number of taxpayers were not informed of the amount of tax to pay on account by 31st January 2019 and they're not able to fix this before 31st July.
In January, they were experiencing a number of computer problems which included problems with the tax demands for Payment On Account (PIA). This happened both online and with the paper statements they send out.
For anyone who pays more than £1,000 in income tax per year, this Payment On Account is important. It applies to most self-employed individuals as well as many company directors.
HMRC has realised this is a real problem for them and have said that anyone affected should contact their accountant who should deal with it for them, or directly if they do self-assessment themselves. They have said that they will put it right eventually, and no-one affected will be charged any additional interest.
Some people have made a voluntary Payment On Account, however, the HMRC computer automatically repaid it, so it's an interesting risk. My advice? Deposit everything you think you owe HMRC (including any POA) into a savings account and pay it in January 2020. At least you'll get a little interest out of HMRC's own mistake.
If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.