HMRC VAT Party Brewery Organise couldn't
Discussion
Eric Mc said:
No - unless the Payments on Account turn out to be higher than the actual liability.
Say your ultimate 2007/08 tax liability comes to £5,000. and say the two payments on account you made on 31 January 2008 and 31 July 2008 respectively come to £6,000 (this can happen) - this means that you will have overpaid your overall 2007/08 tax liability by £1,000.
In those circumstances, the Revenue will DEFINITELY pay you some interest.
Not as much as they used to ! ... Remember that old scam of overpaying th IR by 50k because their interest rate was better than the banks etc ? ... Say your ultimate 2007/08 tax liability comes to £5,000. and say the two payments on account you made on 31 January 2008 and 31 July 2008 respectively come to £6,000 (this can happen) - this means that you will have overpaid your overall 2007/08 tax liability by £1,000.
In those circumstances, the Revenue will DEFINITELY pay you some interest.
Edited by Eric Mc on Wednesday 18th July 09:13
The interest rates are much closer to the bank base rates now - so the advantages of using the Revenue as a "deposit account" or, more likely, a form of borrowing, are gone.
Don't forget that interest charged by the Revenue is not allowable as a business cost. Conversely, interest received from the Revenue is tax free.
Don't forget that interest charged by the Revenue is not allowable as a business cost. Conversely, interest received from the Revenue is tax free.
Leftie said:
I have now had a yellow Surcharge liability Notice, despite them assuring me it was sorted and they had the dosh.
I suppose I had best check it has left my account and ensure they agre they have it (again).
Took me ages to sort this, including them sending me a red letter. Then a week later HMRC write with a NI demand for £423 which I paid. Then a week later they send me the nast letter about owing them £178. Turns out the allocated to the £423 to 2007/8 not 2006/7 anmd they owe me £245.I suppose I had best check it has left my account and ensure they agre they have it (again).
Should I write them a nasty letter?
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