Self Assessment
Discussion
I used the online self assessment in January and the system kept telling me I was due a credit of £130, I double checked all of the figures as it was clearly incorrect as it should have been around a small amount due to the IR.
I didn't have time to go into the tax office so I just submitted it, they sent me the cheque and I banked it - yesterday I get an invoice for the small amount and the amount they have overpaid me!!
At least they've not had the nerve to try to fine me or charge me interest!!
I didn't have time to go into the tax office so I just submitted it, they sent me the cheque and I banked it - yesterday I get an invoice for the small amount and the amount they have overpaid me!!
At least they've not had the nerve to try to fine me or charge me interest!!
How can we tell?
If you are paying tax four years late, I would expect interest charges.
The final payment date for taxes due in respect of the year 2001/02 would have been 31 January 2003. If a balance has remained outstanding from 31 January 2003 to only a few weeks ago, then an interest charge (plus Surcharges) would have been normal. The interest and surcharge amounts would have been calculated as percentages of the outstanding tax balance allocated over the number of days the tax balance remained unpaid.
If you are paying tax four years late, I would expect interest charges.
The final payment date for taxes due in respect of the year 2001/02 would have been 31 January 2003. If a balance has remained outstanding from 31 January 2003 to only a few weeks ago, then an interest charge (plus Surcharges) would have been normal. The interest and surcharge amounts would have been calculated as percentages of the outstanding tax balance allocated over the number of days the tax balance remained unpaid.
Edited by Eric Mc on Wednesday 14th March 13:22
They can raise an assessment if you are correctly liable for interest on arrears of taxation paid. The taxes acts allow the Revenue to charge interest (and penalties) when taxes have not been paid on their statutory due dates.
If you do not agree with the figures they have arrived at, you can appeal against the assessed amount stating the grounds for your appeal.
If you do not agree with the figures they have arrived at, you can appeal against the assessed amount stating the grounds for your appeal.
Tax law states that it is the TAXPAYER'S legal obligation (under the Self Assessing rules) to notify the Revenue of any tax liabilities due. If, for whatever reason, the taxpayer fails to do this and consequently ends up paying the due tax well after the statutory payment date, the Revenue are absolutely within their rights to charge interest on the outstanding tax amount for the period from the original due date to the date the tax was actually paid.
Indeed, they could charge penalties as well due to the fact that the taxpayer failed to notify them at the correct time - although they have the discretion to waive or mitigate penalties if they so wish.
Indeed, they could charge penalties as well due to the fact that the taxpayer failed to notify them at the correct time - although they have the discretion to waive or mitigate penalties if they so wish.
That's WHY the interest is being charged. Your legal due date for paying 2001/02 tax was 31 January 2003. The fact that the Revenue only found out recently that you had a tax liability in respect of 2001/02 does not release you from the obligation to clear the liability by January 2003. The Revenue are therefore at liberty to seek the interest on the late payment.
Eric Mc said:
They won't reduce the amount due
As he is patently the accounting sage I wont disagree with Eric but I do have direct experience of them wiping off over £1000 worth of fees, fines and interest over late SA returns.
Their behaviour in my case was appalling and my case file was littered with their errors but I did get a load of fines and fees wiped off after a LOT of argument.
They won't cancel tax amounts due - but they will cancel or reduce interest and penalties for various reasons -
i) the taxpayer has been co-operative
ii) the Revenue are to blame in any way
iii) there were mitigating circumstances surrounding the taxpayer (and "I forgot to complete a return" or "I didn't know I was supposed to complete a return" would not be acceptable mitigating circumstances).
I've had penalties and interest cancelled for reasons i) and ii).
i) the taxpayer has been co-operative
ii) the Revenue are to blame in any way
iii) there were mitigating circumstances surrounding the taxpayer (and "I forgot to complete a return" or "I didn't know I was supposed to complete a return" would not be acceptable mitigating circumstances).
I've had penalties and interest cancelled for reasons i) and ii).
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