Taxes Management Act 1970 section 59H

Balancing of instalments for the purposes of section 59G

Section 59H explains how to determine whether the instalments in a managed payment plan under section 59G are properly balanced around the due date, using a time value calculation.

• Instalments paid before the due date are balanced by those paid after it when the total time value of each group is equal or approximately equal.
• The time value of each individual instalment is calculated as A × T, where A is the instalment amount and T is the number of days before or after the due date that the instalment falls.
• The total time value for each side (before and after the due date) is found by adding together the individual time values of all instalments on that side.
• HMRC may make regulations to define when one amount is approximately equal to another, and such regulations may differ for different cases.