What does Schedule 3ZA paragraph 3 of the Taxes Management Act 1970 cover?

Schedule 3ZA paragraph 3 establishes the payment deadline that applies when HMRC corrects a self-assessment in a personal or trustee return under section 9ZB. The correction may result in additional tax being owed by the taxpayer or a repayment being due from HMRC, and the provision specifies the timeframe for settlement.

What is the payment deadline when HMRC corrects a personal or trustee self-assessment return?

Any tax payable or repayable following an HMRC correction must be settled by the day after the end of a 30-day period beginning on the date the notice of correction is given. In practice, this means the taxpayer or HMRC has 31 days from the notice date to make the required payment or repayment.

How is the 30-day period calculated for a correction under section 9ZB?

The 30-day period starts on the day HMRC issues the notice of correction. For example, if a notice is issued on 10 June, the 30-day window runs from 10 June to 9 July, and the tax must be paid or repaid on or before 10 July, which is the day following the end of that period.

Does Schedule 3ZA paragraph 3 apply to both tax payable and tax repayable?

Yes, the provision applies in both directions. When HMRC corrects a self-assessment and the result is additional tax owed by the taxpayer, the same 30-day-plus-one deadline applies as when the correction results in a repayment due to the taxpayer from HMRC. The settlement deadline is identical in both scenarios.

Taxes Management Act 1970 Schedule 3ZA paragraph 3

Correction of personal or trustee return by Revenue

Schedule 3ZA paragraph 3 sets out the payment deadline that applies when HMRC corrects a self-assessment in a personal or trustee return, resulting in tax being payable or repayable.

Applies when HMRC corrects a self-assessment under a personal or trustee return (section 9ZB)
The correction may result in either additional tax being owed or a repayment being due
Any tax payable or repayable must be settled by the end of the day following a 30-day period after the notice of correction is issued
The 30-day period begins on the day the notice of correction was given to the taxpayer

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