Payment on account reduction claim still pending- what to pay on 31st Jan

DebsNJ

Submitted a claim to reduce payments on account online at the start of December. Client had a baby at the start of April so her income is a fraction of previous years. Online account states it is being processed and the estimated completion date is 27th Dec (which was almost 4 weeks ago!).

What happens if it hasn’t been processed by the 31st Jan? Can she pay the reduced amount she submitted or will she be required to pay the full amount?

douglasstroud

I would tell your client to pay the reduced amount, however when it comes to submitting the next tax return and if this figure was too low then HMRC will charge interest on the difference.