Here Is What You Should Know About Claiming Back Tax
Tax returns can be completed any time after the tax year’s end, as long as it’s before the submission deadline. The sooner a tax return is submitted, the sooner the offset or repayment will come in! Submitting a tax return sooner rather than later raises the likelihood of a speedy offset or repayment.
Filing a tax return online can be done through logging into HMRC online services. There should be a clickable option that says “request a payment.” You can also just telephone them for repayment to be requested.
Tax Repayment
When tax is overpaid on income upon completion of a Self-Assessment tax return, HMRC (HM Revenue & Customs) will handle the repayment upon tax return processing. The way of compensation can be stated in the tax return. There are generally two ways to get paid back: through cheque or paid directly into a bank account.
When tax is overpaid after a tax return is completed, it is no longer necessary for you to submit a claim separately for the sole repayment. Tax repayment can then be claimed by way of a Self Assessment tax return.
It should be noted that HMRC doesn’t always follow the directions taxpayers make. There’s still a chance the repayments they make will be done towards the last debit or credit card used to pay on the Self Assessment account. While there are warnings provided by HMRC on notes and the tax return form alike, a lot of people are unfortunately still caught out.
In some cases, another Self Assessment tax liability is due within a number of weeks after. The first payment on account made for the tax year that will be following will see any amount meant for repayment reduced by the total required sum. This allows the liability (or liabilities) to be recovered as they become due.
On the other hand, if there’s another amount owed to HMRC such as a tax credit overpayment, it may be possible to have them ‘offset’ that repayment manually against a different amount. So the amount you’re due to be repaid will just be subtracted from the other amount you will need to repay. If there’s still a balance after that, you have to repay it. Otherwise, any repayment left over will be paid out.
A good rule of thumb is to pick up the phone and speak directly to someone from HMRC to talk about requirements.
Did A Security Check Stop Your Repayment?
In some cases, HMRC will want to review certain things before issuing a repayment. This is part of their prevention measures to stop fraudulent claims of back tax. It should be noted that if HMRC is opening an enquiry into your tax return’s figures, that’s something else entirely.
Conclusion
Claiming back tax is not as complicated as many people think. If tax is overpaid upon completion of a Self-Assessment return, HMRC will handle repayment upon processing of the tax return. If the tax return is completed and tax is overpaid, a separate claim isn’t necessary since the Self-Assessment will do.
Need to claim a tax refund in the UK? Check out Tax Refund Calculator! We can help you determine if your taxes were overpaid.