Repayment by revenue...

Repayment by revenue...

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Discussion

Sideways Tim

Original Poster:

862 posts

187 months

Friday 5th June 2009
quotequote all
My wife and I each got a letter from the Revenue yesterday telling us that they were repaying c£1500 each into some random account that we think might be a building society account. Spoke to our accountant and he thinks it might be to do with some CGT that we paid earlier this year, that they have been unable to process for some reason.

Question is - are they likely to ask for it back again at some point? No one at the tax office seems able to answer that for us.

Mx_Stu

810 posts

224 months

Friday 5th June 2009
quotequote all
If I was in your situation I think I would have preferred the repayment to be fully expected and the accountant to confirm what it’s for! I would go back to him and seek clarification.

Only thing that springs to mind is do you normally pay payments on account in respect of your self assessment liabilities and has your accountant put in a claim to reduce these due to a reduction in income?

If the payment was for tax due that they simply haven't processed due to an admin issue then yes they will come asking for it back (with interest)!

Eric Mc

122,096 posts

266 months

Friday 5th June 2009
quotequote all
If you had a CGT element to your tax liability for 2007/08, the 2008/09 Payments on Account will be based on the non-CGT elements of your 2007/08 liability only.

The Revenue will only give money back to you if they are satisfied that you overpaid.

I would check out EXACTLY what is going on.

Sideways Tim

Original Poster:

862 posts

187 months

Friday 5th June 2009
quotequote all
Still waiting a call fromm a Revenue 'technician' to clarify the basis of their calculations.

My one thought is the fact that year end 2008, we posted a net loss. Would that negate the payment of the CGT?

Eric Mc

122,096 posts

266 months

Saturday 6th June 2009
quotequote all
No.

Sideways Tim

Original Poster:

862 posts

187 months

Tuesday 9th June 2009
quotequote all
Ya boo sucks. It's the CGT - they didn't process the payment for some reason or other and they will want it back.