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HMRC internal manual

Self Assessment Manual

From
HM Revenue & Customs
Updated
, see all updates

Interest, penalties and surcharge: penalties: deferring a late payment penalty trigger date (Action Guide)

Where a late payment penalty trigger date needs to be deferred, Time To Pay (TTP) functionality should be used.

To defer a late payment penalty trigger date, follow steps 1 - 4 below.

The guide is presented as follows

  Step 1
   
  Steps 2 - 3
  Step 4

All cases

1. To view the Time To Pay details from the User Role function menu in ‘Taxpayer’ area
   
  * Enter the taxpayer reference
  * Select ‘AMEND TAXPAYER SIGNALS’ then
  * Select the [Maintain Time to Pay] button

Where TTP start/end dates are present on the SA record

2. Where the TTP start date on the SA record is later than the deferral date for the late payment penalty
   
  * Amend the start date to the deferral date
  Note: Where the TTP start date on the SA record is earlier than the deferral date for the late payment penalty, do not amend the start date to avoid the trigger of an incorrect penalty
3. Where the deferral date is after the TTP start date, only change the TTP end date where the deferral date is after the end date. If so
  * Set the TTP end date to 30 after the deferred relevant due date for interest purposes
  * Make an SA note
  Note: You must show the deferral date and any changes made to the TTP start/end dates

Where there are no TTP start/end dates present on the SA record

4. Where there are no TTP start/end dates present on the SA record
   
  * Set the TTP start date as the day before the payment is due to be made
  * The first payment amount should be the total debt less £5
  * The regular payment amount should be £5
  * Set the TTP reviewed date as 30 days after the deferred relevant due date for interest purposes
  * Enter `Y’ in the `Inhibit Letters’ box
  * In the `Enforcement Action’ box, select `Oher’ from the drop down menu
  * Make an SA note
  Note: You must show the deferral date and any changes made to the TTP start/end dates