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HMRC internal manual

Debt Management and Banking Manual

Payment processing and accounting: payment allocation, overpayments and repayments: Duty Repaid In Error Refunded (DRIER): S30 Taxes Management Act (TMA) 1970 assessments

Section 30 test

Section 30 TMA 1970 should be considered by any officer discovering an over-repayment where Section 29 TMA1970 and Finance Act 1998, Schedule 18, Para 52 are not appropriate. S30 TMA 1970 assessments are made to recover over-repayments of IT, CT and NIC class 4 where a repayment has been made in error.

Examples where S30 is appropriate:

A) a customer has paid tax of £1,000 and is due a repayment of £50. The repayment is made for £500 in error. A S30 assessment can be raised for £450.

B) a customer has paid tax of £5,000 and is due a repayment of £1,000 plus £100 repayment interest. The repayment is made, and a duplicate repayment is made at a later date. A S30 assessment can be raised for £1,100.

Note: Section 30 assessments are not appropriate where the over-repayment was not originally held as a payment of tax/Nic from the customer.

Examples where S30 is not appropriate:

A) a customer pays tax of £100, which is due to be repaid. The repayment is issued for £1,000. The £900 is not an over-repayment of tax as it was not paid in the first place.

B) customer X pays £500 which is incorrectly allocated against customer Y’s record, which becomes overpaid and a repayment is issued. The repayment is not a repayment of tax because customer Y never paid the amount that caused the overpayment in the first place.

Action to take

Where the test is satisfied, arrange for an assessment to be made

  • for IT SA: as a stand alone assessment see SAM112010 
  • for CT as CTM95140 

and note your case papers accordingly.

Important Note

After applying either test, if there is any doubt that assessment is appropriate, raise a DRIER charge.