Tax bills omit payment on account in new HMRC glitch

The age-old advice to contractors  to check HMRC’s Payment on Account arithmetic is being underlined this tax season, as a glitch is failing to factor-in what taxpayers have already paid.

In fact, a HMRC “systems error” is what accountants were reportedly told of when they let officials know that bills for last year’s tax were showing up with the advance payment not deducted.

The glitch means tax bills are likely to be bigger than they ought to be, at least for a “small number” of 2017/18 self-assessors, the Daily Telegraph reported tax officials as saying.

Chartered tax firm Blick Rothenberg hopes the problem will be “rectified as soon as possible” but, in the meantime, the official advice for those affected was to contact HMRC.

And, according to the firm, not to accept the Revenue’s figures.

“Taxpayers will understandably rely on the information sent to them by HMRC”, said Blick Rothenberg senior manager Stephanie Tremain.

“But for peace of mind it's important that they double check the amount due in January 2019 with their accountant, or for those without an accountant, they need to check their completed 2017-18 tax return.”

Profile picture for user Simon Moore

Written by Simon Moore

Simon writes impartial news and engaging features for the contractor industry, covering, IR35, the loan charge and general tax and legislation.
Printer Friendly, PDF & Email

Contractor's Question

If you have a question about contracting please feel free to ask us!

Ask a question

Sign up to our newsletter

Receive weekly contractor news, advice and updates.

Every sign up will be entered into a draw to WIN £100 Amazon Vouchers.

* indicates required