With the UK experiencing a long recession, the ICAEW believes that many taxpayers may be due a repayment from HMRC. This comes as the 31 January deadline for completing self assessment online form approaches and millions find out how much tax they owe or could reclaim for 2008/2009.
You may have overpaid tax if you only worked for part of the year or your circumstances changed perhaps through redundancy or by becoming self-employed. Perhaps you have less income from your investments or you have had to reduce the rent you charge for your buy-to-let property, but you have not yet told HMRC.
Anita Monteith, Technical Manager from the ICAEW Tax Faculty, says:
“If your income has gone down, you may think that the payment on account you are being asked for the next year is too high. In this case, you can use form SA303 to ask for it to be reduced or apply online. You must make sure you tell the Tax Office should your income go back up later in the year, otherwise you may have to pay interest on any tax you pay late.
“Also, make sure you are looking at the right figure before you pay your tax bill. The amount shown as payable will include all amounts outstanding and not just the amount which is due for payment at the end of January. In particular, where the 2008/09 tax return has already been processed by HMRC, the ‘due for payment’ figure will include both of the payments on account due for 2009/10. The second of these isn’t due until the end of July.”
If you think there has been a mistake and a repayment is due you’ll need to tell HMRC. For convenience you can have a repayment deducted from any tax due on you next self-assessment statement if it is either less than £10 or a tax repayment is due shortly. Alternatively you can ask for a repayment to be made directly into your bank or building account or for a cheque. Sometimes HMRC may ask you for more information – to make sure that the figures are correct – before making a repayment.
Added Monteith:
“Don’t forget that if you think your refund is wrong you need to get in contact with HMRC as soon as possible so that they can put things right.”
