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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): sending a statement

The ‘Self Assessment Legal Framework’ (SALF) says that statements will be sent showing all payments made and all amounts still due. This is a courtesy service that is given to help customers keep track of their tax position. Even though statements may include a payslip these are not asking for, or demanding payment, and it is not a legal requirement that they are issued. If a statement is not issued this should not affect the customer’s responsibility to properly manage their SA record, or awareness of the build up of interest on a delayed payment.

However, sending certain statements is important to the work done on some cases. For example the first statement sent in a HMRC calculation case gives proof of the amounts to be paid. Sending the June statement reminds customers of the second POA due on 31 July.

For HMRC calculation cases

Where HMRC error has led to a statement not being sent or sent too late for the balancing charge or first POA due on 31 January, a revised date of 30 days from the first statement or notice received by the customer is to be allowed. The excess interest is given up.

In self calculation cases

The customer is fully aware of how much to pay and should always make sure they pay by the legal due dates. This is regardless of any delays or mistakes made by HMRC. Because of this, interest due on the first POA or the balancing charge will not be given up just because the customer has not received statements.

Second POA

Where HMRC error has led to a statement not being sent or sent late for the second POA due on 31 July, allow a revised date of 30 days from the first statement or other notice first received by the customer. The excess interest is to be given up.

This is regardless of whether the case was HMRC or self calculation.