Discussion
Having had a reasonable year the year before last, and a not so good year last year, and I can't even begin to describe the catastrophe of this year, Alastair owes me a not inconsiderable sum in tax overpaid on account. Does anyone know when this should be repaid, or are Winky and Darling going to try and hold on to it to fill the black hole in the economy?
Very good question. They've held on to mine for 2 months now.
I gather there was a problem at the repayments office, so repayments are slow in coming through. And the bigger the repayment, the longer it takes to come through anyway - they apparently have to apply a specific procedure for larger amounts.
I gather there was a problem at the repayments office, so repayments are slow in coming through. And the bigger the repayment, the longer it takes to come through anyway - they apparently have to apply a specific procedure for larger amounts.
I assume you are Self Employed.
If you have already paid the 1st of the 2009/10 Payments on Account (this would have been payable on 31 January 2009) and it is now obvious that the real tax liability for 2009/10 is going to be much less than that for 2008/09, then you can make a claim to have the 2009/10 Payments on Account reduced - to Zero if appropriate. The Revenue will not argue this claim and just process it. The claim is made using a Form SA303.
By making the claim now, you will reduce the amount that should have been paid in January and will also reduce the second payment which will be due onm 31 July.
The difficult part of this operation is estimating how much the real tax liability for 2009/10 will be. If you reduce the two 2009/10 Payments on Account to too low a level, the Revenue will charge interest on the difference between what was paid and what should have been paid.
If you have already paid the 1st of the 2009/10 Payments on Account (this would have been payable on 31 January 2009) and it is now obvious that the real tax liability for 2009/10 is going to be much less than that for 2008/09, then you can make a claim to have the 2009/10 Payments on Account reduced - to Zero if appropriate. The Revenue will not argue this claim and just process it. The claim is made using a Form SA303.
By making the claim now, you will reduce the amount that should have been paid in January and will also reduce the second payment which will be due onm 31 July.
The difficult part of this operation is estimating how much the real tax liability for 2009/10 will be. If you reduce the two 2009/10 Payments on Account to too low a level, the Revenue will charge interest on the difference between what was paid and what should have been paid.
Ken Sington said:
Thanks Eric. It is actually the 07/08 repayment that is the issue here. I had a notice from the Revenue in January that a refund was due, but no indication when it might actually be received.
What did you indicate on the 07/08 self assessment tax return? Did you tell them to refund you any tax overpaid for 07/08?Gassing Station | Business | Top of Page | What's New | My Stuff