Part 7 U.K.Administration
MiscellaneousU.K.
111Managed payment plansU.K.
(1)This section applies where a person (“P”) has entered into a managed payment plan in respect of—
(a)an amount on account of income tax which is to become payable in accordance with section 59A(2) of TMA 1970,
(b)an amount of income tax or capital gains tax which is to become payable in accordance with section 59B of that Act, or
(c)an amount of corporation tax which is to become payable in accordance with section 59D of that Act.
(2)P enters into a managed payment plan in respect of an amount if—
(a)P agrees to pay, and an officer of Revenue and Customs agrees to accept payment of, the amount by way of instalments,
(b)the instalments to be paid before the due date are balanced by the instalments to be paid after it (see subsections (8) to (10)), and
(c)the agreement meets such other requirements as may be specified in regulations made by the Commissioners.
(3)But this section does not apply, in the case of an amount of corporation tax, where an arrangement under section 36 of FA 1998 (payment of tax by members of a group of companies) has been made in relation to the amount.
(4)If P pays all of the instalments in accordance with the plan, P is to be treated as having paid, on the due date, the total of those instalments.
(5)If P—
(a)pays one or more instalments in accordance with the plan, but
(b)fails to pay one or more later instalments in accordance with it,
P is to be treated as having paid, on the due date, the total of the instalments paid before the failure (but this is subject to subsection (6)).
(6)Where—
(a)subsection (5) applies in a case where the first failure to pay an instalment occurs before the due date, and
(b)P would (in the absence of a managed payment plan) be entitled to be paid interest on any amount paid before that date,
then, despite that subsection, P is entitled to be paid that interest.
(7)Where—
(a)subsection (5) applies,
(b)P makes one or more payments after the due date (whether or not in accordance with the plan), and
(c)an officer of Revenue and Customs gives P a notice specifying any or all of those payments,
P is not liable to a penalty or surcharge for failing to pay the amount of the specified payments on or before the due date.
(8)The instalments to be paid before the due date are balanced by those to be paid after it if the time value of the instalments to be paid before that date is equal, or approximately equal, to the time value of the instalments to be paid after it.
(9)The time value of the instalments to be paid before the due date is the total of the time value of each of the instalments to be paid before that date (and the time value of the instalments to be paid after that date is to be construed accordingly).
(10)The time value of an instalment is—
where—
A is the amount of the instalment, and
T is the number of days before, or after, the due date that the instalment is to be paid.
(11)The Commissioners may by regulations make provision for the purpose of determining when an amount is approximately equal to another amount.
(12)Regulations under this section may make different provision for different cases.
(13)In this section—
“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;
“the due date”, in relation to an amount mentioned in subsection (1), means the date on which it becomes payable.
(14)This section has effect where the due date falls after the day on which this Act is passed.