959AP Payment of preliminary tax by direct debit

Summary

This section contains rules relating to the payment of preliminary income tax by means of direct debit arrangements with the Collector-General. Where relevant conditions are satisfied, a person is treated as having paid preliminary tax on 31 October in the tax year for the purposes of section 959AO.

Details

Where a chargeable person authorises the Collector-General to do so, and complies with the conditions the Collector-General sets out, they may pay their preliminary tax by direct debit.

Where a chargeable person is paying their preliminary tax by direct debit under this section, their preliminary tax must be paid:

• in at least 3 equal instalments in the first year
• in at least 8 equal instalments in subsequent years.

Direct Debits are on 9^th day of each month.

The Collector-General may agree to vary the amount or number of instalments, in a particular case.

Unless all of the direct debit payments are made as scheduled, the chargeable person will not be treated as having met their preliminary tax obligation.

Where all of the direct debit payments are made as scheduled, the chargeable person will be treated as having paid their preliminary tax by 31 October, in accordance with section 959AO.

Relevant Date: Finance Act 2021