Second payments on account for the year ended 5 April 2019 are due to be paid to HMRC by 31 July 2019.

Unfortunately, due to a glitch in the HMRC statements system, you may not receive a demand from HMRC for the payment.  HMRC had a similar problem in 2018, but we have been advised that it is much worse this year.

It is not a simple issue: if no demand has been sent out by HMRC, but a payment is made, then this payment may simply be refunded to the taxpayer.  HMRC have stated that, if the taxpayer can show that they have not received the appropriate demand, no late payment interest will be charged.

What to do
  1. If you receive/have received a demand from HMRC – make the payment.
  2. Even if you receive no demand for payment, you should make the payment which was calculated when the 2018 tax return was submitted.
  3. If HMRC refund the payment, then it is clear that their system was wrong.
The risk is that, if you do not make payment, you will be charged interest and possibly surcharges, as well as having to enter into significant amounts of correspondence.
Better safe than sorry
My instinct is that clients should just make the payment as originally calculated because they are legally due. If payment is made then there should be no issue with surcharges and interest. There is a risk that HMRC will repay the money, but at least there would be a paper trail to show that clients had met all their legal requirements, if ever there was an enquiry.
We strongly advise you to seek appropriate advice before taking action on any of the points listed above.
All information contained in this document are correct at the time of writing.  Legislation and regulations may change at any time.
If you are in any doubt, please call us for clarification.
About us:  Leggate Associates Limited was formed by Andrew Leggate LL.B FCMA FCA CGMA who has over 35 years of tax and accountancy experience in industry and practice, and the practice is managed by Joanne Leggate FMAAT ATT.  Our clients range from building subcontractors to multi-million pound concerns and high net worth individuals all over the UK.  Please see our website  or follow @LeggateAssoc on Twitter for occasional updates.
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