Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Self Assessment Manual

From
HM Revenue & Customs
Updated
, see all updates

Amend payment: claim to adjust payments on account: collecting payments on account

The payments on account a taxpayer is expected to pay are held on the taxpayer’s SA record as charges. Unless due dates are amended manually, the payments are always due on

  • 31 January before the end of the tax year
  • 31 July after the end of the tax year

The expected payments on account are either the

  • Automatically calculated amounts (see ‘Rules for calculating payments on account’ (SAM1100), or
  • Adjusted amounts set up when a claim to adjust is processed

Function VIEW STATEMENT is used to see what payments on account the taxpayer is expected to pay. A full history of the payments on account, including the date and reason or origin of each amount held, can be viewed. You can view the history by using the [View History] button in function MAINTAIN PAYMENTS ON ACCOUNT. This function is accessed from function VIEW STATEMENT.

The expected payment is used to determine the priority given to pursuing a case where payment and / or the SA return is overdue. A claim to adjust payments on account affects that priority and can influence any recovery action planned. It may also affect the recovery of costs - see subject ‘Recovery of Payments on Account and Costs’ (SAM1080).

Where payment has been received the computer compares the amount received with the amount expected. The next routine taxpayer statement shows the payment. If the payment is inadequate the balance due, which includes any interest, is shown on the statement. An automatic review of the payments on account takes place when an SA return or amended return is captured.

Automatic review of the payments on account

When an SA return or amended return is captured, the payments on account due for the year of the SA return are, either

  • Verified in the amounts originally calculated

Or, if the total liability for the year of SA return (less any Capital Gains tax or tax deducted at source) is lower

  • Re-calculated and amended to the lower total

If the payments on account the taxpayer has made are insufficient, the taxpayer is liable for interest on the payment shortfall. Interest is charged from the payment on account due dates.

Where no payments on account were due and a return is captured, any liability is treated as a balancing charge. It is payable on the balancing payment due date.

The capture of an SA return also enables the payments on account to be calculated for the following year (see SAM1010).

Note: When an amendment or claim to adjust payments on account is processed, the payment on account due dates do not change.

A full history of the payments on account, including the date and reason or origin of each amount held, can be viewed. You can view the history by using the [View History] button in function MAINTAIN PAYMENTS ON ACCOUNT. Function MAINTAIN PAYMENTS ON ACCOUNT is accessed from function VIEW STATEMENT.