HMRC website fault might result in unnecessary tax worries

The ICAEW warns people to take care sending their second payment of tax owed to the HMRC for the 2006/2007 tax year if they have already filed their 2007/2008 self-assessment tax return. 

Tax payers who’ve been efficient and already filed their 2007/2008 self-assessment (which is not due until 31 January next year if filing online), are likely to get a bit of a surprise if they log onto the HMRC website to check how much tax they are due to pay at the end of this month. Due to an error on the HMRC website, the amount shown on the first screen that comes up is actually the total amount owed over the next 13 months, i.e. the payment on account due on 31 July for the 2007/2008 tax year and payments due in January and July 2009 for the 2007/08 and 2008/2009 tax years.

Anita Monteith, Technical Manager, ICAEW Tax Faculty, said: “The HMRC website is misleading and could give many tax payers a headache, as they might believe they’re due to pay a lot more than they actually owe. In the current credit crunch climate, that’s the last type of news anybody would want.

“Several tax payers might get on the phone to the HMRC helpline, wasting time and worrying unnecessary. By clicking through to the next screen, however, a full breakdown of which amounts are due on which dates will show. I therefore urge people not to rush their payments but to check carefully what amount is due when to avoid over payment.”

For tax payers who have not yet submitted their 2007/2008 tax year return, the amount due on 31 July is correct on the first screen.

The ICAEW Tax Faculty has raised the issue with the HMRC to avoid tax payers being misled to pay too much tax at the end of July.

16 July 2008