Section 59G: Managed payment plans, Taxes Management Act 1970

This section applies if a person ("P") has entered into a managed payment plan in respect of—

an amount on account of income tax which is to become payable in accordance with section 59A(2),

an amount of income tax or capital gains tax which is to become payable in accordance with section 59B, or

an amount of corporation tax which is to become payable in accordance with section 59D.

P enters into a managed payment plan in respect of an amount if—

P agrees to pay, and an officer of Revenue and Customs agrees to accept payment of, the amount by way of instalments,

the instalments to be paid before the due date are balanced by the instalments to be paid after it (see section 59H), and

the agreement meets such other requirements as may be specified in regulations made by the Commissioners for Her Majesty's Revenue and Customs.

But this section does not apply, in the case of an amount of corporation tax, if an arrangement under section 59F has been made in relation to the amount.

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.

If P—

pays one or more instalments in accordance with the plan, but

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)).

If—

subsection (5) applies in a case in which the first failure to pay an instalment occurs before the due date, and

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.

If—

subsection (5) applies,

P makes one or more payments after the due date (whether or not in accordance with the plan), and

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.

Regulations under this section may make different provision for different cases.

In this section "the due date", in relation to an amount mentioned in subsection (1), means the date on which it becomes payable.

Section 59G: Managed payment plans

Discussed in

About this text