DMBM215190 - Payment processing and accounting: payment allocation, overpayments and repayments: Duty Repaid In Error Refunded (DRIER): S30 Taxes Management Act (TMA) 1970 assessments
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Section 30 test
Section 30 TMA 1970 should be considered by any officer discovering an over-repayment where Section 29 TMA1970 and Finance Act 1998, Schedule 18, Para 52 are not appropriate. S30 TMA 1970 assessments are made to recover over-repayments of IT, CT and NIC class 4 where a repayment has been made in error.
Examples where S30 is appropriate:
A) a customer has paid tax of 拢1,000 and is due a repayment of 拢50. The repayment is made for 拢500 in error. A S30 assessment can be raised for 拢450.
B) a customer has paid tax of 拢5,000 and is due a repayment of 拢1,000 plus 拢100 repayment interest. The repayment is made, and a duplicate repayment is made at a later date. A S30 assessment can be raised for 拢1,100.
Note: Section 30 assessments are not appropriate where the over-repayment was not originally held as a payment of tax/Nic from the customer.
Examples where S30 is not appropriate:
A) a customer pays tax of 拢100, which is due to be repaid. The repayment is issued for 拢1,000. The 拢900 is not an over-repayment of tax as it was not paid in the first place.
B) customer X pays 拢500 which is incorrectly allocated against customer Y's record, which becomes overpaid and a repayment is issued. The repayment is not a repayment of tax because customer Y never paid the amount that caused the overpayment in the first place.
Action to take
Where the test is satisfied, arrange for an assessment to be made
and note your case papers accordingly.
Important Note
After applying either test, if there is any doubt that assessment is appropriate, raise a DRIER charge.