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HMRC internal manual

Self Assessment Manual

From
HM Revenue & Customs
Updated
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Assessments: assessments within SA: amending SA payments on account

When an SA assessment for a year 1995-96 or later is made you will have to consider whether the SA payments on account for the year following the year of assessment require amending.

As a general rule, the first and second payments on account should reflect the taxpayer’s liability for the previous year. Any balancing payment or repayment is sorted out when the current year’s liability is known based on the SA return.

If the liability for a particular year is increased then the following year’s payments on accounts may need increasing by a similar amount. This will then determine the correct dates from which interest is payable.

Use the following tables to determine whether or not the payments on account for the year following the year of assessment should be increased following the issue of the assessment.

Discovery assessment 

Year of assessment Consider amending following year’s POA
   
1994-95 or earlier No
1995-96 or later - Only year Yes
1995-96 or later - Final year Yes
1995-96 or later - Other years No

All other assessments 

Year of assessment Consider amending following year’s POA
   
All years No

If an amount assessed is subsequently stood over pending the determination of an appeal you must also consider reducing the following year’s payments on account accordingly.

Examples are available (SAM20120) showing in certain circumstances

  • What entries to make in function CREATE REVENUE ASSESSMENT
  • What relevant dates apply
  • The effects on the following year’s payments on account following an appeal against the assessment and a formal postponement application

Note: If a claim to adjust payments on account has already been recorded for this following year, there is unlikely to be any change to the amounts displayed in function VIEW STATEMENT. These amounts are the Taxpayer amounts, resulting from the taxpayer’s claim. To view the revised Revenue amounts you would need to use function MAINTAIN PAYMENTS ON ACCOUNT.