Interactive Investor VCT trail tax

Doctor_Who

For the 2022/23 tax year my income/pension and interest income combined were less than my personal allowance, hence I was a non-tax payer. I have a VCT that was setup through Interactive Investor and they credit my trading account with trail commission. Interactive Investor wrote recently to say that HMRC had told them that tax (20%) should be deducted from the trail commission (reported on this forum here), which they did for the 2022/23 tax year. As a non-tax payer, will the tax paid on the trail commission be automatically refunded by HMRC later this year or will I have to claim it back somehow? It's not a huge amount, about a week's worth of groceries, but better in my pocket than in HMRC's.

Dazed_and_C0nfused

Doctor_Who said:

For the 2022/23 tax year my income/pension and interest income combined were less than my personal allowance, hence I was a non-tax payer. I have a VCT that was setup through Interactive Investor and they credit my trading account with trail commission. Interactive Investor wrote recently to say that HMRC had told them that tax (20%) should be deducted from the trail commission (reported on this forum here), which they did for the 2022/23 tax year. As a non-tax payer, will the tax paid on the trail commission be automatically refunded by HMRC later this year or will I have to claim it back somehow? It's not a huge amount, about a week's worth of groceries, but better in my pocket than in HMRC's.

I suspect an automatic refund is unlikely.

But should be a straightforward thing to claim back yourself.

Doctor_Who

Thanks. I may wait for my P800 to see what that shows. I presume claiming a refund from HMRC would need to be by phone/post since I doubt the online system could cope with such a niche tax reclaim?

Dazed_and_C0nfused

Doctor_Who said:

Thanks. I may wait for my P800 to see what that shows. I presume claiming a refund from HMRC would need to be by phone/post since I doubt the online system could cope with such a niche tax reclaim?

Yeah, they might want sight of some evidence of the tax deducted but it shouldn't be too difficult to sort.

wmb194

If you’re not on SA I’d just submit an R40 for the year and include this under, ‘other income.’

Doctor_Who

Dazed_and_C0nfused said:

Yeah, they might want sight of some evidence of the tax deducted but it shouldn't be too difficult to sort.

I have a document from Interactive Investor stating gross trail commission, tax deducted and net amount.

wmb194 said:

If you’re not on SA I’d just submit an R40 for the year and include this under, ‘other income.’

Not been on SA since 2018. I'll submit an R40 and enclose the tax document from Interactive Investor.

Dazed_and_C0nfused

Doctor_Who said:

Dazed_and_C0nfused said:

Yeah, they might want sight of some evidence of the tax deducted but it shouldn't be too difficult to sort.

I have a document from Interactive Investor stating gross trail commission, tax deducted and net amount.

wmb194 said:

If you’re not on SA I’d just submit an R40 for the year and include this under, ‘other income.’

Not been on SA since 2018. I'll submit an R40 and enclose a copy of the tax document from Interactive Investor.

Corrected that for you 😉