self assessment: overpaid tax

ajp45

Hi, a newbie here - hope I'm posting in the right area.

Just to let others know that if you overpay tax to HMRC and let them hold it to set against later tax bills then - going by what's happened to me - they won't add interest to the sum. However, they told me that if you ask for a repayment then they *will* add interest when repaying the sum to you. I don't see the logic (or the fairness) but there you are.

Beware!

Kayalana99

Of course it's logical...if you over pay they are not a bank so won't pay you money for paying early.

If you don't pay in time, you owe them the balance + any charges they incur having to chase you for it (or as they call it interest as incentive to try and get you to pay earlier)

Any business could do this, HMRC aren't the only ones who charge fee's if you pay late.