Interest on overpayment

Innys

Hello

I pay my tax through the SA process and after I submitted my 04/05 return in January of this year, the IR told me that they owed me quite a bit of money as I had overpaid.

I have been chasing them for the direct credit since the middle of March, but with no joy. I keep getting the "cheque's in the post" excuse.

Does anyone know if they will pay me interest on the money they owe me - or am I dreaming??? :mad:

Thanks

I

Cleasby_2

Were you required to make payments on account for 2004/05?

If so and those payments have proved to be excessive then HMRC will calculate interest from the later of (i) the due date of payment of the payment on account and (ii) the actual date of payment of the payment on account.

If you were not required to make payments on account for 2004/05 then any tax repayment must be a repayment of tax deducted at source. For tax deducted at source interest is calculated from 31 January following the end of the tax year.

Tip: Regardless of your circumstances always tick box 19. Completing boxes 19B.1 and 19B.3 to 7 is also recommended for speedy repayment.

Innys

Yes, I have been paying on account.

I actually completed all the appropriate boxes in section 19 of the return, but it made no difference.

In fact, if I hadn't rung them to chase it, they wouldn't have repaid me at all. They said that it had been overlooked - I am I'm still waiting almost a month after I queried it...

Yet - if I'm one day late with the return, they fine me £60 a day. Equitable?