Finance (No. 3) Act 2010

8 U.K. After paragraph 8J insert—

“Calculation of unpaid VAT: treatment of payments on account U.K.

8K (1) Where P is required, by virtue of an order under section 28 of VATA 1994, to make any payment on account of VAT—

(a) each payment is to be treated for the purposes of this Schedule as relating to the prescribed accounting period in respect of which it is to be paid (and not as relating to the interval between the dates on which payments on account are required to be made), and

(b) the amount of tax unpaid in respect of the prescribed accounting period is the total of the amounts produced by paragraphs (a) and (b) of sub-paragraph (3).

(2) In determining that total—

(a) if there is more than one amount of POAD or POAT, those amounts are to be added together, and

(b) if the amount produced by sub-paragraph (3)(b) is less than zero, that amount is to be disregarded.

(3) The amounts are—

(4) In this paragraph—

• POAD is the amount of any payment on account due in respect of the prescribed accounting period,

• POAT is the amount of any payment on account paid on time (that is, on or before the date on which it was required to be made),

• BPD (which is the balancing payment due in respect of the prescribed accounting period) is equal to

• BPT (which is the amount paid on time in satisfaction of any liability to pay BPD) is equal to

(5) In sub-paragraph (4)—

• PAPD is the amount of VAT due in respect of the prescribed accounting period,

• PAPP is the total amount paid, on or before the last day on which P is required to make payments in respect of that period, in satisfaction of any liability to pay PAPD, and

• POAP is the total amount paid, on or before that day (but whether or not paid on time), in satisfaction of any liability to pay POAD.”

Commencement Information

I1 Amendments made by Sch. 11 para. 8 in force at 1.4.2022 for specified purposes by Finance Act 2021 (c. 26), Sch. 15 para. 5(2)