DMBM802810 - SA Surcharge Helpcard
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TTP1010 help card: Self Assessment Time To Pay (TTP) and Late-Payment Tax-Geared Penalty (LPTGP)/surcharge help card
Full Time To Pay guidance can be found at DMBM800000.
Surcharges/LPTGPs are calculated for a particular year on any balance of tax that remains unpaid for more than 28/30 days after the due date. This also applies to any unpaid payments on account that are not paid by balancing payment due date.
LPTGPs for 2010-11 tax year and onwards
There are three trigger dates.
- First LPTGP - 30 days after the due date.
- Second LPTGP - 30 days and 5 months after the due date.
- Third LPTGP - 30 days and 11 months after the due date.
Most penalty triggers are tied to the 31 January balancing payment due date so are:
- 2 March for the initial penalty (1 March in a leap year )
- 2 August for the second penalty (1 August in a leap year)
- 2 February for the third penalty (1 February in a leap year).
For full details, see SAM61200, SAM61250 and SAM61390.
Surcharges for tax years up to and including 2009-10
There are two trigger dates.
- 28 days after the due date for an initial surcharge.
- 6 months after the due date for a further surcharge.
Most surcharge triggers are tied to the 31 January Balancing Payment due date so are:
- 28 February for the initial surcharge
- 31 July for the additional surcharge.
For full details, see SAM62080.
When to use SA or IDMS to enter TTP details
1. Where:
- the debt is not yet on IDMS, use the SA function to enter the TTP details if the debt is not in IDMS; the details will flow from SA to IDMS.
Care point: You need to enter TTP details on SA, access the time to pay Officer role and set the Taxpayer Designatory Details screen, then: select the ‘signals’ button > select the ‘update’ button > select the ‘Time to Pay’ button. Once in this function you can set up the new TTP arrangement.
- all of the debt on IDMS, you must set up the arrangement using IDMS function IA so the details will flow to SA. If the case is in IDMS, and you use SA to set up the arrangement, the details will not flow to IDMS. Care point: If adding debts to a case with an existing TTP arrangement, close any existing IA, using function ‘Complete’ and after linking in new debts reset up IA using the original agreement date.
- part of the debt is on IDMS, a TTP is agreed or renegotiated and part of the debt is on IDMS and the rest is on SA you should create pseudo work items for the debts not yet on IDMS (see point 5 below)
Note: DRT do not create pseudo work items and have guidance covering actions to take for this scenario.
Care points:
- When negotiating a TTP close any existing IA using function ‘Complete’ and after linking in new debts reset up the IA using the original agreement date.
- Amend TTP signals on SA to match the new details that are on IA, failure to extend the end date will result in late payment penalties being raised when the original end date expires.
2. Make a clear note of the arrangement details on IDMS Notes and Assets (or SA notes if the case is not on IDMS) which includes the years/debts and total amount included and the arrangement terms. This will help us deal with any subsequent appeal.
TTP start and end dates
3. The only way to prevent inappropriate LPTGPs/surcharges is to set the correct start and end dates either directly on SA or via IDMS (see points 1 and 2 above).
4. The TTP start date (SA), or arrangement agreed date (IDMS) should be the date of initial contact – as long as the arrangement is agreed within reasonable time.
5. If TTP start and end dates are already on SA for a previous arrangement, you must not change the start date in SA as this may trigger a surcharge in error. Note: Arrangements set up in IDMS will only change the end date on SA in these circumstances.
TTP arrangements that extend beyond future payment due dates
6. Where possible, include future amounts becoming due in the arrangement.
7. If the case is in IDMS, create a pseudo work item for the amounts becoming due and set up an IA to include the overdue and becoming due amounts.
Note: DRT do not create pseudo work items and have guidance covering actions to take for this scenario.
8. If the case is in SA only, set up the arrangement in SA for all amounts to be included. The overdue and becoming due work items will then move to IDMS together.
TTP agreed after LPTGP/surcharge trigger date and interest
9. Where appropriate, advise the customer that they have already incurred LPTGP/surcharge and that they will receive notification of this shortly.
10. Include LPTGP/surcharges in the arrangement where TTP is agreed after the LPTGP/surcharge has been raised.
11. Interest is charged on late-payment regardless of when a TTP is agreed so include the estimated interest in the arrangement.