Non tax payer - tax deducted from CPP repayments

TiddlyPom

Like a lot of people, I have reclaimed and had refunded CPP premiums relating to prior to 2005. Interest has been paid at 8% and tax has been deducted from the interest payments.

I will submit the documents to HMRC to reclaim this as I am (and was then) a non tax payer.

Are they likely to refund straight away or wait till the end of the tax year?

Any info gratefully received.
Many thanks.

jimmo

You should make your repayment claim on form R40.
http://www.hmrc.gov.uk/forms/r40.pdf
The form R40 was designed to be scanned by a computer, hence the reason for all those little boxes where you put one letter or number in each box. When your R40 is received by HMRC it will be loaded into a machine and one of 3 things will happen.
1)If the machine can’t read your form a human being will see the picture of your form on a screen and will have to make a decision.
2)Your claim will be selected for security checks. Again this requires human involvement and therefore delay.
3) Your claim will be processed as is. The machine will do the computation and issue the cheque and paperwork.
It is rather important that you shouldn’t send the documents you have received from the payer to HMRC unless they ask for them as part of a security check.
No one will look at them if you do and, if you’re lucky, you’ll get them back by return of post. If you’re unlucky, you’ll never see them again and may have to pay for duplicates.
That really is the Self Assessment system. You do the work. HMRC do the processing and check a small percentage.
With regard to timing, repayment claims are normally made at the end of the tax year but I see that the form R40 actually seems to accommodate “in year” claims. See question 1.5 on page 1.
In my time I have dealt with 2 types of “in year” claims. Death cases and cessation of PAYE cases but you do not seem to fit into either of those.
If I were you, and not desperately in need of the money now, I would leave it until early April to make the claim.