Claiming Back Tax WITH INTEREST ?

Joeletaxi

Hi,

I am due some tax rebates from inland revenue for the previous six tax years !

My question is am i allowed to claim interest that i would have been able to earn on this money which the tax man has been earning instead ?

For example i am owed about £500 from 2003-2004 so could i claim the interest on £500 from 5 April 2004 to today ?

8% staturaty interest in the same way you can with bank charges where the bank having your money has gave them extra interest whilst denying you ?

Any info on this would be much appreciated

Thnks !

Bean_Counter

HMRC have fixed interest rates that use when calculating repayments, and it will be less than you quote above. These should be available on their website.

Interest will be automatically added to your repayment.

Joeletaxi

Ive had a quick look but cant seem to find anything Anyone have any quick links for the official site or elsewhere ?

Bean_Counter

http://www.hmrc.gov.uk/rates/interest-repayments.htm

Try this.

malcindebt

The inland revenue pay intrest at a rate of 3%, payable from the 31 January following the end of the tax year which the refund is due. I.e. refund from year ending 5 April 2004 will have intrest added if paid after 31 January 2005.

They charge 6.5% apr on outstanding balances under the same rules if you complete self assessment returns.

Bean_Counter

Interest rates vary from time to time.

3% is the current rate on which they pay, but I think it is 7.5% on late payment per

http://www.hmrc.gov.uk/rates/interest-late.htm#itnic

Joeletaxi

Woo...This seems abit wrong to me ? Surely the relationship should be reciprocal and they should be paying and charging interest at the same rate no matter if it is them or the taxpayer that owes the money to other party ?

Why should i not receive the same rate of interest they charge if i was owing to them ?

Would this stand up do you think if i try to charge interest at there charging rates when i claim my rebate ?

Alfie_E

Joeletaxi wrote: »

Surely the relationship should be reciprocal and they should be paying and charging interest at the same rate no matter if it is them or the taxpayer that owes the money to other party ?

No. They’re the government.

Joeletaxi wrote: »

Why should i not receive the same rate of interest they charge if i was owing to them ?

Because they’re the government.

Joeletaxi wrote: »

Would this stand up do you think if i try to charge interest at there charging rates when i claim my rebate ?

No. They’re the government.

Joeletaxi

Explain to me why because they are the goverment that this is the case please ? WHy just because it is the goverment we are talking about is this so ?

Alfie_E

Sorry to have been a bit flippant. The reason is that they get to set the rules. Ok, governments can be challenged in court, but this is when new legislation clashes with old legislation. Who would you appeal to? The UK courts? They may say it’s unfair, but it’s the law. The EU courts? They don’t deal with the tax affairs of member countries, unless they go against EU treaties on things like free movement.

Mikeyorks

Joeletaxi wrote: »

Would this stand up do you think if i try to charge interest at there charging rates when i claim my rebate ?

Not even on crutches;)

They have looked at 'mirror' interest rates several times in the past .. and they (Treasury) have always dismissed it. They're not unique in charging one rate - and giving another (eg Debts and Savings - with most financial institutes)

And ..... Statutory interest - as an aside - is only applicable from the date of a claim.