SAM1110 - Amend payment: claim to adjust payments on account: rules for adjusting payments on account
When a valid claim is processed payments on account (PoA) are always entered in two equal instalments unless the year is 1996-97.
The only exceptions to this rule are that for the year 1996-97
- The second PoA can exceed the first PoA, but only by 0.01p (see Note 2 below)
- The first PoA can exceed the second PoA. Note that the second PoA can be zero (0.00)
Notes:
| 1. | PoA are not required if the amounts calculated from the previous year’s liability total less than £1000. However, PoA that total less than £1000 after a claim to adjust has been processed, are payable. (The £1000 limit applies to tax return years 2008-09 onwards, for the 2007-08 year and earlier, this limit is £500.) |
| 2. | For the year 1996-97, you may see calculated amounts where the second PoA exceeds the first PoA by more than 0.01p. The normal rule applies if these PoAs have to be adjusted. |
| 3. | Payments on account must be reduced equally even where the reason for the claim is that CIS deductions have been deducted at source. The first payment on account cannot be reduced by more than the second to reflect CIS deductions already made. |
