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Revenue determinations and reducing payment on account

Revenue determinations and reducing payment on...

Tax payer is late in submitting his 2006/07 return. The last date for submission would have been four years from tax year end, which would have fallen on 5.4.2011.

No determinations were issued, but only payments on account were requested based on previous year’s liability. If Revenue were to issue determinations, this should have been done within 3 years after the normal filing deadline (31.1.11) which has passed as well.

We are just wondering whether it will be possible to request reduction in payment on account now? We realize that the deadline for requesting reduction in payment on account is 31 Jan following the tax year. The reason being that there are no taxable profits in the year, based on the accounts which have been recently completed. If HMRC were to ask for evidence, tax payer can provide the same. Would this approach be accepted, or will they refuse it simply because it is out of time?

Is there any other remedy? Any views will be appreciated.



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15th Mar 2012 09:23

Equitable liabiltiy

You need to look for equitable liability which was recently moved from being an ESC to legislation.

Not sure where you will find it, but this is what you want to look at.

The payments on account no longer exist, they will simply be the liability for the year in question.

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By codling
15th Mar 2012 10:41


I am awaiting a response from HMRC in a similar situation. The initial HMRC reply to receipt of the 2007 Tax Return was that it was out of date and no further action woud be taken. I have asked for equitable liability to apply but have also argued that the payments made represent interim payments only, without a formal determination of the liability having been made and as such they are sitting in limbo awaiting either repayment or allocation subject to submission of the Tax Return or the issue of a formal determination of the liability.

HMRC would no doubt take up the cudgels if the liability had been greater than the interim payments made so it should be a two way street. 


Several weeks without a response as yet but a chase up shows it is now under consideration and i await the response with interest.

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By PaulFSZ
15th Mar 2012 11:46

Equitable liability

The conditions to be fulfilled to receive Special relief treatment are now so restricted that it feels like it is a completely different provision from what used to be Equitable Liability. Under Equitable Liability, you had to put in a request (once in a lifetime) and it would have been processed. Under Special Relief, you must fulfill the conditions otherwise you will not be able to receive the relief, albeit it is still once in a lifetime. There are also a lot of circumstances where the Relief would not be granted.

It would be helpful to hear from anybody who has successfully applied for and received 'Special Relief' after Apr 2011 and also what were the circumstances that the tax payer was in, so that HMRC granted the relief?


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