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HMRC internal manual

Self Assessment Claims Manual

HM Revenue & Customs
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Claims involving two or more years: are the payments on account affected

A claim to carry back losses

* will not affect payments on account
* based on the self-assessment for the earlier year
* as that self-assessment is unchanged by the claim.

However, the taxpayer may claim to reduce the payments on account due for the later year because of the loss incurred.

As explained at SACM11020 effect may be given to the claim

* by increasing the aggregate amounts given by section 59B(1)(b) TMA 1970 that is
* the aggregate of any payments on account made under section 59A and
* any tax deducted at source.

If the taxpayer chooses to have relief given in this way, it could be said that the payments on account, for the later year, have been affected by the claim.