So apparently I have overpaid my tax...
Discussion
...to the tune of £600.
I paid up as requested in Jan but it seems they screwed their sums up.
I assume they won't be paying me interest on the amount they owe me
. I wonder if I can send them a £100 fine or a threatening letter for getting their sums wrong? I mean, it's actually their job as opposed to something I have to do in addition to my job...
I paid up as requested in Jan but it seems they screwed their sums up.
I assume they won't be paying me interest on the amount they owe me
. I wonder if I can send them a £100 fine or a threatening letter for getting their sums wrong? I mean, it's actually their job as opposed to something I have to do in addition to my job...NiceCupOfTea said:
...to the tune of £600.
I paid up as requested in Jan but it seems they screwed their sums up.
I assume they won't be paying me interest on the amount they owe me. I wonder if I can send them a £100 fine or a threatening letter for getting their sums wrong? I mean, it's actually their job as opposed to something I have to do in addition to my job...
Just as well you didn;t do that in California! I read somewhere recently that anyone who's overpaid isn't getting their money back, just a credit note/IOU! I paid up as requested in Jan but it seems they screwed their sums up.
I assume they won't be paying me interest on the amount they owe me
. I wonder if I can send them a £100 fine or a threatening letter for getting their sums wrong? I mean, it's actually their job as opposed to something I have to do in addition to my job...
Brown and Boris said:
robinhood21 said:
I think that they do pay interest if they have made a boob, at least they have when on the odd occasion of overcharging me. Good luck!
Bank rate plus X %. Don't go mad with that will you?
If you overpay tax through the Self Assessment system you will always receive interest along with the refund.
If you overpay tax within the PAYE system, you NEVER get interest - especially if they "give" you the refund by amending your current tax code.
Just a little penny pinching trick they can pull.
If you overpay tax within the PAYE system, you NEVER get interest - especially if they "give" you the refund by amending your current tax code.
Just a little penny pinching trick they can pull.
Thanks Eric. Is it true that they realised they'd cocked this up just before the end of Jan but didn't say anything so as not to cause confusion?
I must admit it does rile me that when times are hard and money is tight they can demand too much money without any penalty if they screw it up. If I had paid £600 short on my tax bill you can bet there'd have been penalties!
I must admit it does rile me that when times are hard and money is tight they can demand too much money without any penalty if they screw it up. If I had paid £600 short on my tax bill you can bet there'd have been penalties!
NiceCupOfTea said:
Thanks Eric. Is it true that they realised they'd cocked this up just before the end of Jan but didn't say anything so as not to cause confusion?
I must admit it does rile me that when times are hard and money is tight they can demand too much money without any penalty if they screw it up. If I had paid £600 short on my tax bill you can bet there'd have been penalties!
Not always. If you underpay tax through the PAYE system, if they can recover it later by amending your PAYE Coding, they won't charge interest (and there will be no penalty).I must admit it does rile me that when times are hard and money is tight they can demand too much money without any penalty if they screw it up. If I had paid £600 short on my tax bill you can bet there'd have been penalties!
However, if they chose to ask you to pay the missing tax directly, they WILL charge interest from the date the tax should have been paid up to the date it is actually paid.
If you fail to pay the previous year's Self Assessment tax liability by the following 28 February, they will slap a flat 5% surcharge on the outstanding amount and charge interest on both the outstanding tax amount AND the surcharge until the liability is settled.
NiceCupOfTea said:
It doesn't mention a refund, so hopefully my next payment will be smaller due to the (huge amount of ) interest earned on the overpayment...
If your Self Assessment tax statement shows you in credit, you can ask for the refund to be paid. ) interest earned on the overpayment...In fact, they give you a tick-box option on the Self Assessment tax return asking you "If you have overpaid tax, do you want to have the overpayment refunded to you".
Am I missing something about the tax and IR etc? if you paid the correct amount of tax either PAYE or self employed, you would pay X amount over so many months.
So if the amount is wrong, why are they allowed to claim interest (or pay it) surely they should demand or pay back X not X+interest etc.
I guess people will say that it would have earned interest in the treasury coffers, but to me that would be interest paid by whoever after they collected, you don't get your tax demand reduced by the amount of interest they would get paid, so why should you pay it at all.
if you pay X+interest, then surely you have some legal argument to say you have overpaid. If they owed me £500 i would expect £500 not plus interest.
It just seems wrong to me.
I would rather see a fixed penalty sliding scale for people who under pay / are late.
So if the amount is wrong, why are they allowed to claim interest (or pay it) surely they should demand or pay back X not X+interest etc.
I guess people will say that it would have earned interest in the treasury coffers, but to me that would be interest paid by whoever after they collected, you don't get your tax demand reduced by the amount of interest they would get paid, so why should you pay it at all.
if you pay X+interest, then surely you have some legal argument to say you have overpaid. If they owed me £500 i would expect £500 not plus interest.
It just seems wrong to me.
I would rather see a fixed penalty sliding scale for people who under pay / are late.
The interest amounts are based the due dates of payment. There are two important dates in the Self Assessment tax system, 31 January and 31 July. Most SA taxapyers have to make a payment on both of those dates. The amounts they are due to pay are set when the relevant SA tax return is submitted sometime before 31 January.
If the taxpayer fails to make his/her payments by the set due dates, the Revenue will charge interest on the unpaid amounts from the statutory due date up until the tax is paid.
Conversely, if a taxpayer has overpaid tax and is therefore in credit at these "payment dates", the Revenue will PAY interest to the taxpayer.
I think that it is an eminently fair system with which I have no real problem. What does annoy me is when a taxpayer has overpaid his tax but they won't refund the money until the taxpayer chases for it.
Even then, he'll still get his interest.
If the taxpayer fails to make his/her payments by the set due dates, the Revenue will charge interest on the unpaid amounts from the statutory due date up until the tax is paid.
Conversely, if a taxpayer has overpaid tax and is therefore in credit at these "payment dates", the Revenue will PAY interest to the taxpayer.
I think that it is an eminently fair system with which I have no real problem. What does annoy me is when a taxpayer has overpaid his tax but they won't refund the money until the taxpayer chases for it.
Even then, he'll still get his interest.
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