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HMRC internal manual

Self Assessment Manual

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Amend payment: claim to adjust payments on account: consequences of amending payments on account

When payments on account (PoA) set up earlier are amended, the effect the amendment has on the taxpayer record depends on a number of conditions.

below describes the effect on a taxpayer record where payments on account are amended before an SA return has been captured or a Determination has been made.

To see what effect an amendment to the payments on account has after an SA return has been captured or, exceptionally, a Determination has been made see .

Table 1

Condition Effect on taxpayer record
   
No earlier claim to adjust PoA The amended PoA become the amounts payable by the taxpayer
Claim to adjust PoA present and amended amounts are smaller than claimed amounts The amended PoA become the amounts payable by the taxpayer
Claim to adjust PoA present and amended amounts are greater than claimed amounts The amended PoA are stored (see Note: below) for interest purposes. The claimed amounts remain the amounts payable by the taxpayer
The relevant date (for interest) has been changed The changed relevant date is retained in every case
Payment(s) are allocated to the PoA set up earlier If the amended PoA become the amounts payable by the taxpayer the payments are allocated afresh to the new PoA. Any amount over and above the value of the fresh PoA is available for allocation to other charges. Otherwise the allocation remains unchanged
Interest charge present If the amended PoA become the amounts payable by the taxpayer the interest charge is cancelled. Where the amended PoA are paid in full a fresh interest charge is raised. Otherwise interest remains unchanged

Note: Meaning of ‘PoA are stored’

Stored payments on account (PoA) are retained on the record and can be viewed by using the [View History] button in function MAINTAIN PAYMENTS ON ACCOUNT. Function VIEW STATEMENT only shows information relating to the PoA currently payable.

In the situation where the claimed amounts are less than the amended amounts function VIEW STATEMENT will ignore the amended amounts and show

  • The PoA payable by the taxpayer immediately before the claim, and
  • An adjustment representing the amount of the claim

The amended amounts would only become the amounts payable by the taxpayer if the taxpayer sent in a further claim that increased the proposed PoA to the amended amounts.

Table 2

The table below describes the effect of amending payments on account after an SA return has been captured or, exceptionally, a Determination has been made.

Condition Effect on taxpayer record
   
PoA entered are greater than the total net tax plus NIC liability from the latest SA return or Determination The existing PoA created as a consequence of capturing the return or processing a Determination are retained.

Note: Where the payments on account payable are based on a captured return, a taxpayer may object to the payments on account that are set up on the grounds that he or she has been disadvantaged. This can happen where, for example, all or part of ‘Unpaid tax for earlier years’ is included in the payments on account instead of the balancing charge.

Where you receive this type of objection and you agree it is valid, use function CREATE RETURN CHARGE to enter the amounts from the SA return again. For more information about using this function see subject ‘When to use function create return charge’ in section ‘Individuals Returns’ (SAM121650).    
  PoA entered are equal or less than the total net tax plus NIC liability from the latest SA return or Determination The amended PoA become the amounts payable by the taxpayer and the balancing payment charge is recalculated. Any CGT remains part of the balancing charge.

Note: Where the payments on account payable are based on a captured return, a taxpayer may object to the payments on account that are set up on the grounds that he or she has been disadvantaged. This can happen where, for example, all or part of ‘Unpaid tax for earlier years’ is included in the payments on account instead of the balancing charge.

Where you receive this type of objection and you agree it is valid, use function CREATE RETURN CHARGE to enter the amounts from the SA return again. For more information about using this function see subject ‘When to use function create return charge’ in section ‘Individuals Returns’ (SAM121650).