959AO Date for payment of income tax

Summary

This section sets out the due dates for the payment of income tax. Preliminary tax is due by 31 October in the tax year. Income tax is, in general, due by the return filing date for the year. However, if relevant preliminary tax requirements have not been met, the due date for income tax reverts to 31 October in the tax year.

Details

Except in the cases of payment by Direct Debit (dealt with under section 959AP) the due date for payment of preliminary income tax is 31 October in the tax year.

Income tax for a year is generally due for payment on or before the specified return date (defined in section 959A as the 31 October in the tax year following the year). This date applies regardless of whether or not an assessment has been made.

Income tax may be due earlier than the specified return date if:

• Preliminary tax was not paid.
• Insufficient preliminary tax was paid. That is, the amount paid is less than the least of:
  • 90% of current year liability
  • 100% of prior year liability
  • 105% of the pre-preceding year liability when paying by Direct Debit under section 959AP.
• Preliminary tax was not paid by the due date.

In these cases, income tax is due on 31 October in the tax year e.g. the date on which the preliminary tax was due.

For the purposes of determining if sufficient preliminary tax was paid:

• Where the chargeable person was not a chargeable person for the prior year, the income tax payable for that period was nil.
• If additional tax becomes due in the prior year or the pre-preceding year, and that amount is payable one month after the assessment (under section 959AU(2) for an amended assessment or under section 959AV(2) in relation to the determination of an appeal), then it shall not be taken into account for this test.
• The amount of the tax liability for the prior and pre-preceding years should be before any relief under section 481 (being investment in films) or under part 16 (being Employment Incentive Initiative or Seed Capital relief)

In the case of joint assessment under sections 1017 or 1031C, where a chargeable person was not the chargeable person in the prior year or the pre-preceding year because the other spouse / civil partner was, or where separate assessment under section 1023 or 1031H applied, then the correct amount of preliminary tax should be determined by reference to the tax liability that would have been payable, had the couple been jointly assessed and had the chargeable person been the chargeable person in that previous year.

Where the amount of tax assessable on the prior year is to be adjusted because of the operation of section 65(3) (e.g. where a chargeable person has changed their accounting date) then any additional tax due under such an amendment is due by the specified return date for the tax year.

This increase amount of tax is not taken into account for the purposes of determining the appropriate amount of preliminary tax.

Relevant Date: Finance Act 2021