Self Assessment and overpayment...

mmunro2013

I have overpaid tax repayment from last years return. According to my HMRC account this overpayment is available for repayment. However, I am about to submit my return for 2024/25 and anticipate I will owe some tax. How can I offset this with the overpayment sitting in my account from last years return?

eskbanker

Happy to be corrected but I'd have thought that this would happen automatically, i.e. if you leave the overpaid balance within your SA account rather than claiming repayment, then the underpaid transaction should be added to the account, giving a net balance of the two offset together.

sheramber

As  eskbanker says if the credit remains in your accoint it will be set off automatically to any tax payable.

Dazed_and_C0nfused

And you will probably be credited with some interest as well.

mmunro2013

sheramber said:

As  eskbanker says if the credit remains in your accoint it will be set off automatically to any tax payable.

Do you think I will see evidence of that when or shortly after I hit the 'submit' button?... Don't trust otherwise

Dazed_and_C0nfused

mmunro2013 said:

sheramber said:

As  eskbanker says if the credit remains in your accoint it will be set off automatically to any tax payable.

Do you think I will see evidence of that when or shortly after I hit the 'submit' button?... Don't trust otherwise

Neither, you will need to wait a few days after submitting your return.

Once the liability from your return updates your Self Assessment account then the credit will be allocated to anything due on 31 January 2026.

mmunro2013

Thanks for the responses... so, for the avoidance of doubt, and after submitting my SA for 2025/6;
- I had £500 credit in my SA account
- Total Income Tax due by 31/1/2026 is £1200
- asked to pay 1st payment on account for 2025-26 by 31/1/2026 of £600
- asked to pay 2nd payment on account for 2025-26 by 31/7/2026 of £600

I will pay £1200 now. I will then wait a few days and check my SA account where I will see the 1st payment on account should be £100 to be paid by 31/1/2026.

Agreed?

(Note: all figures quoted are illustrative)

eskbanker

mmunro2013 said:

Thanks for the responses... so, for the avoidance of doubt, and after submitting my SA for 2025/6;
- I had £500 credit in my SA account
- Total Income Tax due by 31/1/2026 is £1200
- asked to pay 1st payment on account for 2025-26 by 31/1/2026 of £600
- asked to pay 2nd payment on account for 2025-26 by 31/7/2026 of £600

I will pay £1200 now. I will then wait a few days and check my SA account where I will see the 1st payment on account should be £100 to be paid by 31/1/2026.

Agreed?

(Note: all figures quoted are illustrative)

It should all ultimately equate to the same thing but I'd have thought that shortly after submitting, the net payment due by 31 January would show as £1300, so no need to pay anything before then.

mmunro2013

Ok, thanks all for your help. I have submitted and will check my account after about 72 hours for any changes to my SA account BEFORE making any payment due by 31/1/2026