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HMRC internal manual

Self Assessment Manual

From
HM Revenue & Customs
Updated
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Interest, penalties and surcharge: interest: amending the relevant date (RD)

Changes to the relevant date (RD) can be made clerically using function AMEND RELEVANT DATES only after the charge is entered on the SA record. Access to the function is restricted to authorised Review Interest Network Officers in the office having responsibility for the case.

You can defer the relevant date and in certain circumstances apply a date earlier than the normal due date.

The most common circumstances when you should consider amending the relevant date are when

  • A taxpayer dies
  • The SA return that was filed on time is processed after 31 December following the end of the SA year
  • Underpayments originally coded out are subsequently brought back into SA

And

  • An under deduction of PAYE income tax which is subject to a direction under Regulation 72(5) or 81(4) of the Income Tax (PAYE) Regulations 2003. (The relevant date is always 19 April following the tax year in which the under deduction occurred)

To avoid any interest objection from the taxpayer, you should amend the relevant date, wherever possible, before any interest charge is notified.

Late issued returns

Where a return for CY-1 is issued after 31 July following the end of the return year, the computer automatically amends the relevant date of the balancing payment to 3 months plus 7 days after the date the return was issued. The payments on account due dates are also amended.

Where the Failure to Notify (FTN) signal is set the computer automatically sets the relevant due date of the balancing charge and the first payment on account as 31 January. If the FTN signal should have been set but wasn’t then you can use function AMEND RELEVANT DATES to correct the position.

Revenue calculations

When a return is received, the computer will automatically set the Relevant Due Date for any Balancing Charge Debit to the later of

  • 31 January following the end of the year of assessment

Or

  • Three months and seven days after the return was issued, if the return was issued after 31 July following the end of the year of assessment

However, if the taxpayer requests a Revenue Calculation, they will need to file the Return at least 30 days before the Relevant Due Date. This is because a Balancing Charge Debit is due 30 days after the first notification to the taxpayer advising the amount due (usually the tax calculation).

So, where the return is logged within the time limit, but not captured until after the later of

  • 31 December

Or

  • Two months and seven days after the date of issue

the Relevant Due Date (set automatically by the computer when the return is captured), will need to be amended clerically using SA function AMEND RELEVANT DATES.

The first payment on account is also due 30 days after the taxpayer is notified. (See also subject ‘Capture of Individuals Returns after 31 December’ (SAM121280).

You can only amend the relevant date after the return details have been captured and the SA record updated with the charge. For this reason, from 31 December following the end of the return year, all Revenue Calculation cases received before 31 October (30 September for years up to, and including, 2006-07) but not processed until after 31 December must be reviewed by the Review Interest Network Officer following return capture.

The Review Interest Network Officer reviews each case and uses function AMEND RELEVANT DATES where necessary to amend the balancing payment or payment(s) on account due dates. See SAM60052 for some examples.

You will be able to see the new relevant date on statements. The latest change is also available to view in function AMEND RELEVANT DATES. Whenever the relevant date is amended the interest is automatically recalculated.

A similar situation may occur when a return is processed too late for the December statement selection but it will only be necessary to amend the relevant date if the taxpayer has not been advised by letter.

A note should be made on the taxpayer’s record in function MAINTAIN SA NOTES when the relevant date is amended.

Whenever you amend the relevant date for interest purposes, consider the surcharge position. See subject ‘Effects of Amendments to Relevant Dates for Interest’ (SAM62030)

Debt Management Offices

If you need to impose a relevant date which is earlier than the Statutory Due Date but the function prevents you doing so and displays an error message, bring the matter to the attention of your Interest Supervisor. Your Interest Supervisor should contact the BusinessUserSupport (SA) mailbox.