Failure by HM Revenue & Customs to order enough paper, has resulted in self assessment paper statements not being issued to every taxpayer that makes payments on account. The paper statements are issued in January and July each year to inform taxpayers of the amount they are required to pay. However, approximately 500,000 taxpayers can expect to receive their statement after the deadline of 31st July 2011 as a result of the error by HMRC.
Taxpayers who make payments on account are typically sole traders, partners of a business, limited liability partnerships or self employed. In January and July each year, a payment is made on account based on the amount of tax paid in the previous tax year. For instance, the payments on account for 2010-11 will be based on the actual tax paid in the tax year 2009-10. Any tax which has been under or overpaid will be dealt with by the following January.
A spokesperson for HMRC explained that the error occurred as HMRC miscalculated the number of statements which would be required. The spokesperson said:
“The volumes on this occasion have risen out of all proportion to previous patterns. HMRC will now ensure that they understand the reasons for this and will be fully prepared for any future rises.”
The late statements will be issued in August but the taxpayers who are affected by the delay will be allowed an extra 30 days to make their payments. Taxpayers who file online can check their statements online, and payments can be made by telephone. However, tax advisers warn taxpayers who are affected to carefully check that they do not receive a fine incorrectly.
Want to learn more?
Subscribe to our newsletter to get accounting tips like this right to your inbox
About The Author
MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.