Certificates of tax deposits is an advance system of payment whereby taxpayers can send funds to HMRC in advance of tax bills.

After announcing that certificates of tax deposits unclaimed by 23 November 2023 may be forfeited, HMRC is now issuing late payment demands for taxpayers who paid liabilities using these deposits weeks ahead of last month’s self-assessment deadline.

In a Freedom of Information request by RSM UK, HMRC disclosed that £391m of tax deposits held by the tax authority as part of the certificate of tax deposit (CTD) scheme could potentially be forfeited if they remain unused by 23 November 2023.

However, recent experience has highlighted that even if taxpayers attempt to cash in some of their CTDs, they are likely to face difficulties, RSM has warned.