No July payment could lead to surprise tax bill in January

HMRC has confirmed that taxpayers who have not received a statement of account letter in June or July 2019 because no 2018-19 payment on account has been created do not need to take action. Any liability for 2018-19 will be payable in full in January 2020. Taxpayers for whom accounts were set up must make the second payment by 31 July 2019. Statements of account reflecting this will be issued and interest will be charged if it is paid late.

The Association of Taxation Technicians believes taxpayers who normally make payments on account will find their tax bill in January 2020 much larger than expected. It is concerned that they may not realise what has happened so will not set aside enough money to meet their full tax bill.

Jon Stride co-chair of the ATT’s technical steering group said: ‘Individuals who do not receive expected demands should set aside the...