Taxes Management Act 1970 section 59G

Managed payment plans

Section 59G allows taxpayers to arrange instalment plans with HMRC for paying income tax, capital gains tax or corporation tax, with specific rules about how instalments must be balanced around the normal due date and the consequences if the plan is or is not fully completed.

• A managed payment plan lets a taxpayer pay income tax, capital gains tax or corporation tax in instalments agreed with an HMRC officer, provided the instalments before and after the due date are balanced
• If all instalments are paid as agreed, the full amount is treated as having been paid on the normal due date, avoiding late payment consequences
• If the taxpayer defaults on later instalments, only the instalments paid before the default are treated as paid on the due date, though any entitlement to interest on early payments is preserved
• Where payments are made after the due date and an HMRC officer issues a notice specifying those payments, the taxpayer is not liable to penalties or surcharges in respect of those specified amounts