SAM61351 | Interest, penalties and surcharge: penalties: deferring a late payment penalty trigger date (Action Guide)

From HM Revenue & Customs · Self Assessment Manual

Where a late payment penalty trigger date needs to be deferred, Time To Pay (TTP) functionality should be used.

To defer a late payment penalty trigger date, follow steps 1 - 4 below.

All cases

1. To view the Time To Pay details from the User Role function menu in ‘Taxpayer’ area

Enter the taxpayer reference
Select ‘AMEND TAXPAYER SIGNALS’ then
Select the [Maintain Time to Pay] button

Where TTP start/end dates are present on the SA record

2. Where the TTP start date on the SA record is later than the deferral date for the late payment penalty

Amend the start date to the deferral date

Note: Where the TTP start date on the SA record is earlier than the deferral date for the late payment penalty, do not amend the start date to avoid the trigger of an incorrect penalty

3. Where the deferral date is after the TTP start date, only change the TTP end date where the deferral date is after the end date. If so

Set the TTP end date to 30 after the deferred relevant due date for interest purposes
Make an SA note

Note: You must show the deferral date and any changes made to the TTP start/end dates

Where there are no TTP start/end dates present on the SA record

4. Where there are no TTP start/end dates present on the SA record

Set the TTP start date as the day before the payment is due to be made
The first payment amount should be the total debt less £5
The regular payment amount should be £5
Set the TTP reviewed date as 30 days after the deferred relevant due date for interest purposes
Enter Y' in the Inhibit Letters’ box
In the Enforcement Action' box, select Oher’ from the drop down menu
Make an SA note

Note: You must show the deferral date and any changes made to the TTP start/end dates