SolvedDMBM450110 | Legislation and enabling regulations: Self Assessment
From HM Revenue & Customs · Debt Management and Banking Manual
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The legislation that covers payments on account and balancing payments is in Sections 59A and 59B TMA 1970. The table below gives a brief explanation of what the legislation contains.
| Legislation | Explanation |
|---|---|
| Section 59A(1) | Explains who is expected to make payments on account |
| Section 59A(2) | Explains how payments on account are calculated and when they are due |
| Section 59A(3) and 59A(4) | Provides for the taxpayer to make a claim to adjust payments on account |
| Section 59A(5) | Provides for adjustments to be made, for example by repayment, where payments on account are amended |
| Section 59A(6) | Details the penalties that can be applied where the taxpayer makes a fraudulent or negligent claim |
| Section 59A(7) | Provides for normal recovery action to be taken for payments on account |
| Section 59A(8) | Defines income deducted at source |
| Section 59A(9) | Allows a direction to be given that payments on accounts are not due for a particular year |
| Section 59B(1) | Explains how the balancing payment is calculated |
| Section 59B(2) | Explains that income deducted at source is taken into account when calculating the balancing payment |
| Section 59B(3) | Provides for the balancing payment due date to be deferred to 3 months and 7 days after the issue of the return in cases where HMRC delayed issuing the return |
| Section 59B(4) | Explains that, excepting the circumstances at 59B(3), the balancing payment due date is due on or before 31 January following the year of assessment |
| Section 59B(5) | Provides that the balancing payment can be amended and describes when the amended amounts are due or repayable |
| Section 59B(6) | Explains the due date where tax is due by virtue of an assessment |
SA penalty and appeal legislation
| Penalty | Appeal legislation |
|---|---|
| Fixed Penalties | Section 93(2) and Section 93(4) TMA1970 |
| Daily penalties | Section 93(3) TMA1970 |
| Tax geared penalties | Section 93(5) TMA1970 |
| Determining the penalty | Section 100 TMA1970 |
| Appeals against penalties | Section 100 TMA1970Section 100(b) TMA1970 |
| Late filing penalties | FA2009 Sch 55 |
| Late payment penalties | FA2009 Sch 56 |