What Should I Do If My Self-Assessment Payment On Account Is Not Showing?
By
HuutiMoney
If you are wondering what you should do if your payment on account is not showing, you will find guidance through the following blog post. Here, we will not only discuss the actions to take in such situations but also explain how payment on account works and check the payments that are due on your end.
What Should I Do If My Self-Assessment Payment On Account Is Not Showing?
If you make a payment on account and it does not appear in your account, there are a few things you can do.
First, you should check your Personal Tax account online using your Government Gateway user ID and password to confirm whether or not your payment on account is being displayed and has been processed or not.
Second, you should check with your bank or building society to see if the payment has been taken from your account. It can sometimes take a few days for the payment to be processed.
If you have made a payment on account and it does not appear in your account after a few days, you should contact HM Revenue and Customs and seek their advice on how to proceed further.
If you are a UK taxpayer, you may be required to make payments on account towards your tax bill for the following year. These are advance payments towards your tax bill and are based on your previous year’s tax liability. If you are registered for self-assessment, you will need to make two payments on account each year – one by 31 January and the other by 31 July.
How Does Payment On Account Work For Self-Assessment Tax Returns?
If you file your tax returns under the self-assessment system (and not the PAYE system) in the UK, you have to account for tax owed to the HMRC from your tax returns. To make sure that you are not indebted to the HMRC, you make an advance payment in part which is your payment on account.
Payment on account is paid to the HMRC via 2 instalments within each tax term; with each of your instalments amounting to 50% of your previous tax bill.
Payments can be made in any of the following ways:
- Online banking
- Telephone banking
- CHAPS or bacs
- Direct debit card online
- At your bank or building society
- At your post office
Can Payment On Account Be Reduced?
Yes, payment on account can be reduced from one year to the next. While this is quite normal, it can become a problem if your income significantly drops. If you anticipate a fall in your income in the next year, you should inform the HMRC and request a reduced payment of account.
If you overpay the amount, the HMRC will refund the excess amount to you through a tax refund. However, if you underpay the amount, the HMRC can charge you with penalties.
If you are unsure of the amount that you owe to the HMRC, you can check the details online by using your Government Gateway user ID and password.
Conclusion:
The above discussion indicates that if your payment on account does not show for your self-assessment tax return, you should inform the HMRC to confirm if there has been an error or delay in updating their records or if the delay lies at the processing end of the payment.
References:
Understand your Self Assessment tax bill: Payments on account – GOV.UK