Payments and Repayments

Enter additional information relating to the tax overpayment or underpayment of your client.

Tax Adjustments

Enter where indicated the amount of the following adjustments:

Increase in tax due from an earlier year Enter the amount by which your client’s tax liability has increased because of an adjustment to an earlier year. Such an adjustment will typically be a consequence of an income averaging claim. The adjustment entered here will be used to populate box 14 on page TC2 of the tax return and will be included on Computation Summary at Computation Preview.
Decrease in tax due from an earlier year Enter the amount by which your client’s tax liability has decreased because of an adjustment to an earlier year. Such an adjustment will typically be a consequence of an income averaging claim. The adjustment entered here will be used to populate box 15 on page TC2 of the tax return and will be included on Computation Summary at Computation Preview.
Underpaid tax from earlier years included in the tax code for the return year If your client’s PAYE tax code included a restriction in respect of tax underpaid in earlier years, then enter here the amount of unpaid tax on which the restriction was calculated. This will ensure that the additional tax collected as a consequence of the coding restriction is not treated as tax overpaid for the return year. The amount entered here will be used to populate box 7 on page TC1 of the tax return and will be included on Computation Summary at Computation Preview.
Outstanding debt included in the tax code for the return year If your client’s PAYE tax code included a restriction in respect of an outstanding debt, then enter here the amount of unpaid tax on which the restriction was calculated. This will ensure that the additional tax collected as a consequence of the outstanding debt is not treated as tax overpaid for the return year. An outstanding debt may typically arise where there has been an overpayment of tax credits. The amount entered here will be used to populate box 9 on page TC1 of the tax return and will be included on Computation Summary at Computation Preview
Underpaid tax for the return year included in the tax code for the following tax year If your client has underpaid tax for the return year and some or all of the underpayment is being collected by way of restriction in the PAYE coding for the following tax year, then enter here the amount of unpaid tax on which the restriction has been calculated. This amount should not be greater than the total tax underpaid for the return year. The amount entered here will be used to populate box 8 on page TC1 of the tax return and will be included on Computation Summary at Computation Preview.

Payments on account for the return year

Enter the payments on account made in respect of the tax liability for this year. The amounts will be included on Tax Calculation in Report Preview.

Collection of Tax via PAYE

Tick the relevant box if the tax underpayment is to be collected by a PAYE coding restriction or if the PAYE coding is to be restricted in respect of other income.

Payment on Account reduction

Tick Apply to reduce payments on account if you are electing to pay a smaller amount than that calculated.

You should complete this application, even if you have already completed a form SA303.

Enter where indicated the amount to which the first payment on account should be reduced, not the amount of the reduction.

Select from the drop-down menu the reason for the application:

  • Business profits have reduced
  • Other income has decreased
  • Tax allowances and reliefs have increased
  • Tax deducted at source has increased
  • Other

The information entered here will populate boxes 10 and 11 on page TC1 and box 17 on page TC2 of the tax return.

Tax Refunded or Set off

Enter the amount of any current year Income Tax refunded or set off by HMRC or Job Centre Plus.

Claim Tax Overpaid

Select as appropriate:

  • No claim for the return year
  • Claim repayment by cheque
  • Claim repayment direct to bank account

Information entered at Claim Tax Overpaid and subsequent sections will help populate boxes 4 to 14 on page TR6 of the tax return.

Repayment Recipient

If in Claim Tax Overpaid you have selected either Claim repayment by cheque or Claim repayment direct to bank account, then Repayment Recipient open. Select the repayment recipient as:

  • Client
  • Nominee
  • Tax adviser

Bank Details Where Repayment Should be Made

If in Claim Tax Overpaid you have selected Claim repayment direct to bank account, then Bank Details Where Repayment Should be Made will open.

Enter here:

  • Name of bank or building society
  • Name of account holder
  • Sort code
  • Account number
  • Building society reference (if applicable)

Nominee Address

If in Repayment Recipient you have selected either Repayment to a nominee or Repayment to tax adviser, then Nominee Address will open. If you have selected Repayment to tax adviser, then the address will be populated automatically. You are able to amend these details, if necessary. If you have selected Nominee Address, then enter the address of the person to whom the repayment should be made.

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