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. Section 100 of Finance Bill 2025 amended section 959AP by the deletion of subsections (2), (3) and (4) to remove reference to specific payment dates and instalment amounts. The amendment will facilitate the moderni-sation of direct debit payments of preliminary income tax, by removing the minimum number of direct debit instalments per tax year currently specified in the section.

Details

(1) This section applies to a chargeable person who authorises the Collector-General to collect preliminary tax for income tax purposes by debiting a bank account, and who complies with the conditions the Collector-General imposes to ensure that preliminary tax payable by a chargeable person for a tax year will be paid.

(5) 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 2025