The table below illustrates some typical situations that you
might encounter when amending payments on account.
Guidance is provided in the table about when, and to what
extent, to apply
concessionaldue dates to the payments on account (PoA).
Notes:
| Situation | Other criteria | Relevant Due Dates |
| New business started in
1995/96, and
Chargeability notified by 5 October 1996 | No other source assessed
for 1995/96.
Note: Where there is another source assessed for 1995/96 the new and existing sources are considered together when PoA are calculated. The relevant due dates of the resulting PoA are those that apply to the existing source already assessed. Normally these are the statutory due dates. This rule applies even where the liability assessed on the existing source is fully held over. | The relevant date of each
payment on account is the later of
The statutory due date 30 days after the first notification of the amounts payable, either by letter or on the statement |
| New business started in
1995/96, before 2 January 1996
and
Chargeability notified after 5 October 1996 | None | The relevant dates of the payments on account are the statutory due dates |
| New business started in
1995/96, after 1 January 1996
and
Chargeability notified after 5 October 1996 | No other source assessed
for 1995/96.
Note: Where there is another source assessed for 1995/96 the new and existing sources are considered together when PoA are calculated. The relevant due dates of the resulting PoA are those that apply to the existing source already assessed. Normally these are the statutory due dates. This rule applies even where the liability assessed on the existing source is fully held over. | The relevant date of the
1st payment on account is the earlier of
|
| 1995/96 liability
finalised late due to taxpayer delay,
and
PoA amended or new PoA set up | Correctly completed return and any accounts not received by 31 October 1996 | The relevant dates of the payments on account are the statutory due dates |
| Details to finalise
1995/96 liability received on time,
and
New PoA notified after 31 December 1996 due to HMRC error or delay | Correctly completed return and any accounts received by 31 October 1996 | The relevant date of each
payment on account is the later of
|
| Taxpayer ceases in
1996/97 and restarts between 1 February 1997 and 5 April 1997
Payments on account are only payable because of the new source | Claim to reduce 1996/97 payments on account to Nil made when taxpayer ceased | The relevant date of the 1st payment on account is the date the business restarted. The relevant date of the 2nd payment on account is the statutory due date |
| New business started in
1996/97, and
Chargeability notified by 5 October 1997 and return issued by 31 October 1997 | No source assessed for 1995/96 | No payments on account
are due for 1996/97. The 1996/97 liability is all included in the
balancing payment due on 31 January 1998.
The first year that payments on account are due is 1997/98. The relevant dates of the payments on account for 1997/98 are the statutory due dates |
| New business started in
1996/97, and
Chargeability notified by 5 October 1997 | There is a 1995/96 assessment on a ceased source | The relevant date of each
payment on account is the later of
|
| New business started in
1996/97, and
Chargeability notified after 5 October 1997 | There is a 1995/96 assessment on a ceased source | The relevant due dates of the payments on account are the statutory due dates |
| 1995/96 included in an
Investigation Settlement covering more than one year
PoA due for I996/97 | Before 1996/97 PoA are
set up there must be an assessment for 1995/96 which is then
informally discharged.
Note: A 1995/96 Schedule D assessment must be present before PoA are set up for 1996/97. If there is no 1995/96 assessment, an assessment that reflects the liability under the Investigation Settlement must be raised. However, where there is already an assessment in place for 1995/96 there is no need to amend it or raise a further assessment to reflect the agreed liability. The taxpayer or agent is told that the 1995/96 liability agreed under the Settlement is used to establish the 1996/97 PoA. The agreement under the settlement does not affect the taxpayer’s or agent’s right to make a claim to reduce PoA. In all cases unpaid 1995/96 assessed liability is informally discharged after PoA are created. The informal discharge of 1995/96 liability does not affect the validity of the 1996/97 PoA. | The relevant due dates of the payments on account are the statutory due dates |
