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

Managed payment plans 59G 1 This section applies if 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),

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

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 section 59H),

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

3 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.

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 If—

a subsection (5) applies in a case in which 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 If—

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

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