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HMRC internal manual

Self Assessment Manual

Payments: payments overview: section 299 ITTOIA 2005 (Action Guide)

When you receive an enquiry in the office responsible for processing for a statutory instalment arrangement (SIA) in accordance with S299 ITTOIA 2005 follow steps 1 - 10 below.

For details of how to access any of the SA functions, select ‘Index Of Functions’ on the left of the screen.

| 1. | If the request is not in writing, advise the taxpayer to submit a written request for payment by statutory instalments to the office with SA technical responsibility | || | 2. | Refer any written application for a SIA to the office with SA technical responsibility. Ask the office with SA technical responsibility to confirm this is an SIA case and tell you what payments are expected and the statutory due dates | | 3. | If the office with SA technical responsibility tells you a SIA is not appropriate write and advise the taxpayer that the instalment provisions do not apply, ask for payment in full and remind the taxpayer about interest | | 4. | Where the office with SA technical responsibility approves the arrangement establish the number of instalments and the due dates for payment (step 5) and set up the arrangement on the taxpayer record (step 6) | | 5. | Refer to the memo from the office with SA technical responsibility to establish the number and the due dates of the instalments due in accordance with S34(8) ICTA 1988 | | 6. | To set up details of the SIA arrangement on the taxpayer’s SA record | |   | * Use function CREATE RETURN CHARGE and reduce the amount in the Capital Gains Tax field by the amount included in the SIA | |   | * Use function CREATE SUNDRY CHARGE to set up a separate charge on the taxpayer record for each SIA instalment. For each instalment enter the | |   | * Year of the return in the ‘Year Ending 5 April’ field * Due date you established in step 5, in the ‘Charge Due Date’ field * Charge type as ‘Net Underpayment’ * Amount of the instalment in the IT field | |   | * Use function AMEND TAXPAYER SIGNALS to update the ‘Statutory Instalment Arrangement’ field to ‘Y’ | |   | * In the SA user role ‘Time to Pay Officer’, enter the details of the instalment arrangement. The start date is the date of the first instalment, the debit type is ‘NUP’ and the due date of each instalment is the date the payment is payable (the statutory due date), not the date from which interest accrues (the relevant due date) | |   | * Use function MAINTAIN SA NOTES to indicate a SIA has been set up and enter your office numeral to show who the monitoring office is. Select from the SEES Notes Paster, Statutory Instalment section ‘Statutory instalment granted…’ and complete the appropriate details using the drop down boxes | | 7. | Write to the taxpayer confirming the terms of the arrangement. When you write | |   | * Enclose a manually completed payslip and request payment of the first instalment on or before the instalment due date unless payment has been received | |   | * Advise that applications for payment of subsequent instalments will be by the issue of a taxpayer statement and that each instalment will be described as ‘Amount no longer included in PAYE code’ | |   | * Explain that interest will be charged on any instalment paid late | |   | * Mention any other liabilities that are unpaid in particular any amount of the balancing charge that is overdue | | 8. | Review the SIA case shortly after each instalment due date to ensure payments are received and allocated correctly | | 9. | If exceptionally the amount due is amended, use the two CREATE functions in step 6 to amend the instalments to reflect the new liability | | 10. | Where an instalment has not been paid the normal course of action is taken to recover the unpaid amount |