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HMRC internal manual

Self Assessment Manual

Amend payment: claim to adjust payments on account: processing a claim to adjust PoA

General

The processing of claims to adjust payments on account (PoA) is to be given priority. Every effort is to be made to process each claim on the day of receipt. Likewise, the processing of any accompanying payment must not be delayed.

Before a claim is processed check that it is valid - see subject ‘Validity of claim to Adjust Payments on Account’ (SAM1040).

Processing a claim

To process a claim use function VIEW STATEMENT to select the payments on account to be adjusted and to access function MAINTAIN PAYMENTS ON ACCOUNT. The [TP Adjust] button in function MAINTAIN PAYMENTS ON ACCOUNT allows the new payments on account to be entered. There are rules for adjusting payments on account (see SAM1110) which must be followed.

A claim can only be processed if payments on account are set up for the year of the claim and payments on account are only set up when the return for the previous year is captured. If there is a delay capturing return details, the processing of a claim has to wait.

Where a valid claim has been made in writing, but not on a tax return, in all cases you should issue SEES letter SA614 direct to the taxpayer with a copy to the agent if appropriate. The SA614 advises the taxpayer of the interest implications if the payments on account are reduced by too much.

Where a valid claim has been made online, the payments on account will be adjusted automatically and function SA NOTES automatically updated to record that the adjustment has been made.

Warning and error messages

One of two warning messages can be displayed depending on whether

  • There is an open enquiry into the case, or
  • An enquiry was settled for the previous year

Where a warning message is displayed the claim should only be processed after authority has been obtained.

Once return details are captured or a determination is made the payments on account for the year of the return or determination are fixed. If you receive a claim for that year the system will you stop you adjusting the fixed payments on account. In the case of a determination only the capture of a return can alter the payments on account.

Consequences of adjusting PoA

When you adjust payments on account the adjustment may not alter the amount the taxpayer has to pay. Processing a claim to adjust payments on account does not change the payment on account due dates.

Time to Pay

After adjusting PoA, function AMEND TAXPAYER SIGNALS is used to check for the presence of a current time to pay arrangement. Where an arrangement exists and the office monitoring the arrangement is not shown in the Free Format Notes field, function MAINTAIN SA NOTES is used to identify the monitoring office. The monitoring office is advised of the adjustment so the arrangement can be reviewed.

History of claims

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.

Note: The word ‘interims’ is sometimes used to describe the payments on account.