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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
, see all updates

Interest: Interest Review Unit (IRU): Income Tax Self Assessment (ITSA): request to collect SA tax through a PAYE coding adjustment

A request to collect a SA Balancing payment through a PAYE coding can be accepted providing the following criteria are met.

  • The customer is taxed under PAYE.
  • The underpayment does not exceed the specified limit.
  • The return is processed before 31 December coming before the relevant 31 January due date.

If the return is not dealt with before 31 December but the other criteria are met, refer the office involved to the ‘SA Business Helpdesk’ for advice.

Where the criteria are not met and the customer is informed, before the legal due date, that the amount cannot be collected through the coding, then the interest charge should be upheld.

If the customer is not informed, before the legal due date, that the amount cannot be collected through the code, the interest should be recalculated as follows

  • for self calculation cases- from 30 days after the return was dealt with: or
  • in HMRC calculation cases- from 30 days after the date the customer was informed that the tax is due through SA

and give up the excess interest.