Self assessment again!!

sitesafe

Have finally got round to completing this but there are a few queries and wondered if anyone might know the answer as I'm guessing the HMRC helplines will be busy over the next few days.

In August 2011 I received £198 repayment cheque from the tax for overpayments I made during the 2010/2011 tax year.

When filling out my tax return it asked if I had received any refund from them and I put in that I did and entered the amount. However as I actually RECEIVED the cheque outside of the tax year (received in August 2011) but it was for overpayments made during the tax year, am I right in putting it in the 10/11 Tax Return.

I ask, because in my final summary they have calculated that I owe £801 then they have added the £198 already refunded to say I owe £999.

How we have worked out your income tax
AmountPercentageTotalPay, pensions, profit etc£6,495.00@ 20%£1,299.00Total income on which tax has been charged£6,495.00 Income Tax charged £1,299.00minus Tax deductedFrom all employments£498.00Total tax deducted£498.00Total Income Tax due£801.00plus Tax already refunded in the year£198.00Total tax due£999.00


As they owed me the money I can't see how they are adding it back on or should I not have put it in the 10/11 Tax Return, should it be in next years 11/12 seeing as I actually received it in that tax year although it was money owing from the 10/11 tax year?

Hope you can help!

thanks

BoGoF

If the cheque was for overpaid tax for 2010-11 then you are correct to show it in your 2010-11 Tax Return.

Not quite sure why they sent you a calculation/cheque when you were required to complete a Tax Return though.

sitesafe

Hi, and thankyou... it was based on income from employed work in 10/11; during this year I also first registered as Self Employed and was was advised my first Tax Return would be due now (end Jan 2012) - well actually I was told I could do the paper one by the end of October but they didn't send me the forms, then they did and kept sending the wrong ones which made it late, several people HMRC that I called said as it was their fault I could still send the paper one and would allow me to do this until end of January. When I sent it in it got returned because it was paper. I called them and explained the situation and was told I had been given 'bad advice' (that's from four different people then!) and had to do it online. Anyway that's a different story!!

Do you have any idea why they would add on the £198 that they owed me and refunded to me onto a tax total they are saying I owe them? Doesn't seem to make sense (like the rest of it!)...:)

dori2o

sitesafe wrote: »

Do you have any idea why they would add on the £198 that they owed me and refunded to me onto a tax total they are saying I owe them? Doesn't seem to make sense (like the rest of it!)...:)

The calculation takes into account your tax liability BEFORE the refund is taken into account.

The tax liability from 10/11 before taking into account the refund paid to you is £801.

However, you had a refund of tax in August 2011 that related to the 2010/11 tax year.

Based on the information you submitted on the form this refund was not due, therefore they require it to be repaid to them.

sitesafe

Thank you, all a lot clearer now. Think I've nearly finished ...