EM1936 - Working the enquiry: general payments on account: introduction

As soon as you have established that there is additional tax and NICs due, but you have not yet completed your enquiries, you should normally ask for a payment on account, unless the circumstances in EM1940 apply.

It is important to consider requesting payments on account in all relevant cases.

These payments

• indicate to the taxpayer the seriousness of the enquiry
• reduce the amount the taxpayer will have to pay at the end of the enquiry because interest ceases to accrue on the amount covered by the payment on account. You should make the taxpayer aware of this
• can affect the level of penalty charged. If a taxpayer makes a payment on account for a period before the start of penalties under FA07 and FA08, you should take this into account when considering the abatement for co-operation for those penalties, see EM6075. For penalties under FA07/SCH24 or FA08/SCH41, the reduction for quality of disclosure is not affected by payments on account, see CH82400+

Before you ask for a payment on account, you must follow the procedure at EM1938.

You should not ask for more than the additional tax and NICs you have already established is due. As your enquiry progresses, you should consider whether to ask for further payments on account.

It is important to ensure that any general payments on account are identified and treated correctly. Your local SAFE nominee can check what payments are held in SAFE.

If the taxpayer declines to make a payment voluntarily and significant additional liabilities have been clearly established, you should consider making a jeopardy amendment EM1950+ and/or discovery assessments EM3250+.

If the taxpayer makes a payment on account, or asks to make one, when you haven’t requested one, see EM1941.