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SAM110070 | Repayments: issue repayment: effective dates of payment

From HM Revenue & Customs · Self Assessment Manual

The effective date of payment (EDP) of a payment or credit is the date on which it is deemed to have been made.

The SA system will automatically allocate an original EDP to a payment, or a freestanding credit created automatically by the SA system when it first appears on the SA record. The EDP of a freestanding credit created manually must be allocated manually.

It is important that the correct EDP is given to a payment or credit as this allows the calculation of late payment interest and / or repayment supplement as appropriate on the SA record.

However, the original EDP of a payment or credit can change if that payment or credit becomes an overpayment which is subsequently set-off / reallocated.

Information on the EDP to be used for overpayments to be set-off / reallocated or repaid and original EDP for freestanding credits created manually from certain types of relief claims, is available below.

SET-OFFS / REALLOCATIONS, REPAYMENTS AND RPS

The following information is available on each Overpayment / Credit Type listed below

  • Effective date of payment to be used when clerically creating freestanding credits for certain relief’s and when setting-off / reallocating payments and repayment supplement (RPS)

  • Effective date of payment allocated by the SA system to freestanding credits created automatically

  • Date from which RPS is payable on overpayments and freestanding credits, if applicable

For further information see the subject in this section for each Overpayment / Credit Type.

Overpayment / Credit Type

  • Allocated payment or credit to be repaid or reallocated via OAS (SAM110005)

  • Balancing charge credit (BCC) including PAYE and CIS deductions (SAM110035)

  • Freestanding credit created manually from a ‘stand alone’ claim for error or mistake relief (S33 TMA 1970) or overpayment relief (Schedule 1AB TMA 1970) (SAM110086)

  • Freestanding credit created manually from a ‘stand alone’ claim made after the time limit for amending the return (SAM110087)

  • Freestanding credit created manually from a ‘stand alone’ claim or claim to carry back losses or pension contributions, or a claim on a return for Farmer’s Averaging (Schedule 1B TMA 1970) (SAM110088)

  • Freestanding credit created manually from a brought back claim (Schedule 1B TMA 1970) (SAM110085)

  • Freestanding credit created manually on the SA record from a PAYE / CODA overpayment, including pre-SA SC60 deductions (SAM110089)

  • Reallocation of a payment allocated in error (SAM110144)

  • Reallocation or repayment of repayment supplement (SAM110187)

  • S144 TCGA Adjustments by the creation of a freestanding credit (SAM110231)

  • Unallocated payment on SA (SAM110260)

Once a freestanding credit has been created and allocated to a charge, the EDP / RPS rules for payments should be followed if any further reallocation of this credit is made.

Note: Within SA, balancing charge credits and freestanding credits have the ability to attract RPS irrespective of whether they have been allocated to a charge or not. However, payments made within SA will only have the possibility to attract RPS once they have been allocated to a charge that is subsequently reduced, thereby creating an overpayment (excluding interest charges).

  • Use function VIEW STATEMENT to view the allocation history of a payment