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HMRC internal manual

Debt Management and Banking Manual

Legislation and enabling regulations: Self Assessment

The legislation that covers payments on account and balancing payments is in Sections 59A and 59B TMA 1970. The table below gives a brief explanation of what the legislation contains.

Legislation Explanation
Section 59A(1) Explains who is expected to make payments on account
Section 59A(2) Explains how payments on account are calculated and when they are due
Section 59A(3) and 59A(4) Provides for the taxpayer to make a claim to adjust payments on account
Section 59A(5) Provides for adjustments to be made, for example by repayment, where payments on account are amended
Section 59A(6) Details the penalties that can be applied where the taxpayer makes a fraudulent or negligent claim
Section 59A(7) Provides for normal recovery action to be taken for payments on account
Section 59A(8) Defines income deducted at source
Section 59A(9) Allows a direction to be given that payments on accounts are not due for a particular year
Section 59B(1) Explains how the balancing payment is calculated
Section 59B(2) Explains that income deducted at source is taken into account when calculating the balancing payment
Section 59B(3) Provides for the balancing payment due date to be deferred to 3 months and 7 days after the issue of the return in cases where HMRC delayed issuing the return
Section 59B(4) Explains that, excepting the circumstances at 59B(3), the balancing payment due date is due on or before 31 January following the year of assessment
Section 59B(5) Provides that the balancing payment can be amended and describes when the amended amounts are due or repayable
Section 59B(6) Explains the due date where tax is due by virtue of an assessment

SA penalty and appeal legislation

Fixed Penalties Section 93(2) and Section 93(4) TMA1970
Daily penalties Section 93(3) TMA1970
Tax geared penalties Section 93(5) TMA1970
Determining the penalty Section 100 TMA1970
Appeals against penalties Section 100 TMA1970
Section 100(b) TMA1970    
  Late filing penalties FA2009 Sch 55
  Late payment penalties FA2009 Sch 56