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2018/19 missing payments on accounts issue – update from HMRC

Readers may be aware that there has been an ongoing issue on missing 2018/19 payments on account reported to HMRC via the online agent forum. HMRC has now provided an update on the matter.

The update is as follows:-

“HMRC helpline advisors have been provided with guidance to enable them to create the missing 2018/19 payments on account only if the payment is held on the customer’s self assessment account at 31 January 2019.

Agents do not need to notify HMRC of any further cases where 2018/19 payments on account are missing. However, if they specifically wish the 2018/19 payments on account to be created the payment should be already on the customer’s account at 31 January 2019. Where that is the case they can ask for the 2018/19 payments on account to be created.

It is possible that payments intended for the 2018/19 first payment on account may be repaid if the 2018/19 return is submitted, 2018/19 payments on account have not been created and a repayment is claimed on the return. However, there would be no interest implications providing the 2018/19 liability was paid in full by 31 January 2020.

Where 2018/19 payments on account should have been created but haven’t, any liability due for 2018/19 will be due as a balancing payment in January 2020.

If the 2018/19 first payment on account has been paid in full by 31 January 2019 then no interest should be charged even if the 2018/19 first payment on account was actually created after this date. HMRC is happy to review cases where interest has been charged on 2018/19 payments on account due on and paid by 31 January 2019. Please send the UTRs to our mail box agentforum.wt@hmrc.gov.uk

Customers can make payments in advance on their statement of account if they wish as they will have a higher 2018/19 balancing payment to pay in January 2020 (note that it may be necessary to ask HMRC to set the no repayment flag on the account to prevent repayment).

HMRC can confirm that it is currently working to ensure that 2018/19 returns will correctly create 2019/20 payments on account.

HMRC apologises for any inconvenience caused by this issue.” END OF HMRC UPDATE