HMRC asked me to stop doing self-assessment

RecliningInPeace

I couldn't see a tax section, but hopefully someone here could help. I've just done my self-assessment and as in recent years, HMRC owes me a bit.

The day after submitting the return, HMRC sent me a message asking me to stop sending self-assessments unless my circumstances change or they tell me to send one.

I understand the income threshold is increasing, but as my SIPP contributions vary and I usually overpay tax, why would I stop sending self-assessments and miss out on the overpaid tax?

eskbanker

If you've overpaid tax but don't self-assess, HMRC will refund that once they've done the assessment for you later in the year, i.e. the refund isn't dependent on self-assessing.  If that timing is an issue, you may have the option of manually requesting a refund early in the following tax year.

https://www.gov.uk/claim-tax-refund

Tax questions are normally asked and answered here, by the way:

https://forums.moneysavingexpert.com/categories/cutting-tax

squirrelpie

I just looked and it seems this isn't a situation where you can make a manual request. (if their website is accurate of course!)

It seems to me HMRC are trying to delay the repayment of overpaid tax in order to suit their own work schedules and are thus depriving the OP of the interest the money could earn. This seems unfair to me.

NoMore

If the only reason your doing the SA is to claim Pension Tax relief, then you don't have to do a SA. Contact HMRC directly instead (Telephone, Letter, etc) and tell them your gross contributions for the year to the pension and they will either adjust your tax code or send you a rebate.

Dazed_and_C0nfused

squirrelpie said:

I just looked and it seems this isn't a situation where you can make a manual request. (if their website is accurate of course!)

It seems to me HMRC are trying to delay the repayment of overpaid tax in order to suit their own work schedules and are thus depriving the OP of the interest the money could earn. This seems unfair to me.

Not sure why you think it's a delaying tactic.

Assuming the op is employed and entitled to higher (or intermediate) rate relief they could get the benefit of that far earlier outside the Self Assessment system.

There might still need to be a final review once the tax year has ended but some provisional relief can be given during the year in most cases.

Dazed_and_C0nfused

RecliningInPeace said:

I couldn't see a tax section, but hopefully someone here could help. I've just done my self-assessment and as in recent years, HMRC owes me a bit.

The day after submitting the return, HMRC sent me a message asking me to stop sending self-assessments unless my circumstances change or they tell me to send one.

I understand the income threshold is increasing, but as my SIPP contributions vary and I usually overpay tax, why would I stop sending self-assessments and miss out on the overpaid tax?

Why do you think you would miss out 🤔 

You don't need to complete a tax return just to claim tax relief on pension contributions.  In fact by doing so you are potentially delaying when you can benefit from the relief due.

artyboy

I found it hilarious that HMRC told me the same thing in the very tax year where I knew I would be due a 5 figure refund from them for overpayments... 

But I'm sure it was just coincidence 

(and I filled one in anyway, on the 6th April...)

IvanOpinion

They owe me and I got one of those letters. They have had me on an emergency tax code for most of the last tax year, because, despite their tax records for my account saying otherwise, and me telling them on multiple occasions they were wrong, they still decided I was not paying into a pension scheme.
Like I trust them to be able to add 2 numbers together?
Did that before and realised I had given them far too much credit for having intelligence.
I will be doing my tax return myself and ensure I get back the significant chunk they owe me.

MetaPhysical

Thing is, in our complex tax system, the simplest way to get all your reliefs down in one place is to do a tax return.  

Albermarle

It is possible to get blocked from doing a tax return. I was doing SA and was told to stop, and from then on the ability to do an SA from my personal tax account was impossible. The reasoning seems to be to push more people on to using their on line personal tax account.
I understand you can try and force the issue by sending one in by post, but you might find it will be a long time before you get a response. If you get one......

gary83

I got the same message the day after submitting this years self assessment online (& getting a large chunk back) I was previously completing SA to declare interest earned on savings as well as pension contributions to keep my adjusted income just under £50k to ensure benefit both from the additional pension but also to ensure my partner remains entitled to the full amount of child benefit. I assumed they had told me to stop bothering as the child benefit bracket had been raised. Like everyone else above who completes the SA as the government owes me money every year I’d also like to keep doing it