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Interim payments during a compliance check

Whenever HMRC establishes that the tax self-assessed by a taxpayer is insufficient, but the check is still to be completed, it will normally request an interim payment of the anticipated further liabilities.

Making an interim payment (which may also be referred to as a payment on account or an on-account payment) will benefit the taxpayer as it will:

1. •

   demonstrate to HMRC that the check is being taken seriously, with a realistic attitude being adopted to the likelihood of additional tax liabilities

2. •

   provide an indication of the taxpayer’s cooperation and willingness to bring his tax affairs up to date

3. •

   stop any late payment interest running on any corresponding amount of tax that may become due as a result of the check

4. •

   spread the payment of any tax,