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HMRC internal manual

Debt Management and Banking Manual

HM Revenue & Customs
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Payment Allocation, Overpayments and Repayments: Self Assessment: Automatic Payment Allocation and RPS

Up to 28th January 2000

Prior to 28th January 2000 when an overpaid amount was re-allocated, RPS was calculated from the effective date of payment (EDP) to the later of the Relevant due date (RDD) of the charge and the date of re-allocation. Where re-allocation took place after the RDD, the customer was given RPS and charged interest for the common period which runs from the later of the RDD or EDP to the date of re-allocation. See the example below.


A customer pays the first payment on account (PoA) of £1000 on 29 January. She makes a claim to reduce the PoA to £700 on 31 March but does not claim repayment. The £300 excess credit remains on the record.

On 31 May we process another claim increasing the PoA to £900. £200 of the excess is allocated to clear the additional liability.

When the £200 is allocated the system calculates

  • RPS for the period 29 January to 31 May on £200, and
  • interest for the period 31 January to 31 May on £200.

The period 31 January to 31 March is known as the common period because both interest and RPS are calculated for this period.

The calculation of interest and RPS for a common period can disadvantage the customer.

Follow the instructions in subject DMBM210180 and DMBM210185 where you

  • identify a customer who has been disadvantaged by the calculations, or
  • receive an objection because of the interaction of interest and RPS.

The amount on which RPS has been calculated can be identified using function VIEW STATEMENT. The RPS start and end dates equate to the effective dates of payment and the posting [Created] dates of the corresponding re-allocated or repaid amount on the customer record.

Note: the posting [Created] date of the re-allocated or repaid amount does not correspond with the RPS calculation end date where a

  • repayment is involved because the RPS end date reflects the date repayment is made not the date repayment is initiated
  • re-allocation to a charge with a future RDD is involved because RPS is calculated to the future RDD

A balancing charge credit (BCC) has an effective date of payment (EDP) that corresponds with the filing date, normally 31 January after the end of the tax year. RPS applies from the EDP whether the BCC was allocated to a charge or not.

From 28th January 2000

From 28th January 2000 where an overpaid amount is re-allocated, the system uses the effective date of payment (EDP) for calculation of RPS and so this will only be given if the customer makes payment earlier than the RDD of the charge.

No RPS is due in respect of an unallocated amount.