Adjustments to Self Assesment

System

A taxpayer received a 2nd Self Assesment Statement for 05/06. The first shows a credit balance in favour of the taxpayer
The second statement shows
"Adjustment to 1st payment on account for 05/06 From Return X amount to pay"
"Adjustment to 2nd payment on account for 05/06 From Return X amount to pay".
You would have thought the HMRC would send some form of communication showing how they arrive at the adjustments, or where they get it from, but no such luck just a statement demanding payment because someone somewhere decided to make some adjustments.
Hardly being accountable!!
I wonder if anyone else have experiences of this kind?

System

Re:Adjustments to Self Assesment

There are instances when this can happen due to an error and mistake claim being submitted for prior years or (more commonly) a mistake being made by HMRC when allocating payments/on account payments.

If payments on account are reduced this can sometimes throw HMRC into a state of panic and confusion which I think may have been the case here - is it not due to payments on account being reduced at an earlier date only to be found they shouldn't have been? Also, It is not uncommon for payments on account to be allocated to the wrong taxpayer!

They do send out statements to agents and taxpayers showing why and how they have made adjustments to returns if a return is incorrect. If you contact HMRC they should be able to explain to you why the adjustments were made.

Kind regards
Steve