Thousands of self-employed workers could end up facing unexpectedly high tax bills in January 2020 after HMRC has admitted to experiencing a ‘glitch’.
This error has meant that for those owing Payments on Account on 31st July, they might have received an incorrectly reduced amount or may not have had a payment reminder at all.
As a result, this could mean that those given the wrong information (or none at all) could find themselves with a hefty, and unexpected, tax bill next year.
An HMRC spokesman commented, “We are aware of an issue with payment reminders for a small number of customers.
“Anyone who is affected can contact us and we’ll put it right. Nobody will be charged additional interest due to this problem, as long as they pay the full amount due by 31st January 2020.”
Lucienne Parry from Moore Stephens, commented on the HMRC error, “A larger than expected payment in January will not only shock some taxpayers but will leave them with a large hole in their budget as they are forced to pay a huge lump sum in tax. Many are therefore likely to face serious cashflow problems.
“This is of particular concern given that many households are stretched due to the festive season.
“In some cases, we have seen individuals being wrongly sent automatic refunds from HMRC, which will need to be repaid. Those impacted are going to think it very unfair that an HMRC error could lead to interest charges and in some cases potential surcharges.
“If people have any doubt or questions on the tax they owe, it’s vital to have your 2018/19 tax calculations prepared as soon as possible to help them plan and avoid any potential shocks further down the line.”
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