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HMRC internal manual

Self Assessment Manual

From
HM Revenue & Customs
Updated
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Amend payment: claim to adjust payments on account: recovery of payments on account and costs (Action Guide)

If you receive a claim to adjust payments on account (PoA) and recovery action has commenced consider steps 1 - 4 below. The Guide is presented as follows

  Steps 1(This content has been withheld because of exemptions in the Freedom of Information Act 2000)  
   
  Steps 3 and 4

Pursuit of costs following a claim to adjust PoA

1. Maintain the full costs incurred in distraint (poinding in Scotland) or court action where a claim to reduce payments on account is preceded by
   
  * A levy (poinding in Scotland), or
  * Judgment (decree in Scotland)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Recovery action following an invalid claim

3. If enforcement action is under way
   
  * Continue with the enforcement action
  * Maintain the full costs incurred in distraint (poinding in Scotland) or court action
  And where the balancing payment due date has passed
  * Accept only an SA return as evidence that the payments on account are excessive
4. If you are considering taking recovery action and have not incurred any costs
  * Review the recovery action you intend to take
  * Consider deferring recovery to allow the taxpayer time to respond to your letter of explanation inviting a valid claim - see subject ‘Validity of claim to Adjust Payments on Account’ (SAM1040), or the submission of an SA return
  And where the balancing payment due date has passed
  * Pursue the SA return and the liability brought out on the SA return (see the Debt Management and Banking Manual (DMBM)
  * Consider whether a Determination should be made if the taxpayer delays submitting a return