We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Will HMRC Pay Me Interest?
Moving to Self Assessment for the first time in Apr this year, backdated to the FY 24/25, having submitted the 24/25 return I immediately paid the POA for FY 25/26. I then submitted my 25/26 return.
HMRC are now showing that I owe them £1937.20 to be paid in July 26 and they owe me £2840.20 which is shown as pending in Repayments.
Just as small matter of interest, Google AI suggests that amounts shown in Repayments might stay there for some time, and might even remain there after the July deadline for me to pay the £1937.20 and I might be fined if I don’t pay HMRC even though they are still showing the £2840.20 in Repayments.
Financially I won’t have a problem paying the £1937.20 (if I have to).
Will HMRC pay me interest on money held in Pending Repayments? Afterall they would charge me interest if I don’t pay. I think the Pending Repayment appeared on my account on Thursday 30 April.
Why don’t they just pay me the £903?
Comments
-
If the repayment relates to tax erroneously deducted via PAYE during 2024/25 then I think they should pay interest from 31 January 2026, but am no expert in interpretation of these regulations so happy to be corrected!
1 -
Would the interest be paid at 2.75% pa?
0 -
Yes:
1 -
Interesting. I usually do my tax return very late in the year so I can cross check my savings interest figures with HMRC. I was considering doing it early this year before my second payment on account in July because I suspect the second payment might take me over whatever tax I owe due to payments also made through PAYE. I had assumed that if that was the case then the second payment would be cancelled and I would just have to pay the balance owed. It seems that is maybe not the case?
0 -
POA are always easier to explain with some figures really. But a key thing to remember is they are always within 1p of each other, so you would never pay say £1,000 as the first POA and then have just the second POA cancelled.
And they are never increased, from the original amounts, however large the liability actually is for the tax year the POA relate to.
1 -
If you paid £4000 in January but liability was £3500 then both poa would be reduced to £1750 and any money overpaid in January would be available to cover payment due in July.
2nd poa not cancelled but both poa reduced.
1 -
The net effect of my POA for 2025/26 has more or less cancelled my 2nd payment on account in July.
Tax return for 2024/25 showed expected liability for 2025/26 as £2,589.06 so 2 POAs for £1,294.53. First one paid in January 2026.
Tax return for 2025/26 was £2,176.37 owing so £412.69 less.
They have reduced my 2nd POA to £206.35 and said that I'm £206.35 in credit so that will be used to pay the now amended POA of £206.35 leaving £881.83. So I have nothing to pay in July.
As I was told on the HMRC chat, that means I owe less than £1k so will be collected in January 2027.1 -
So can you claim a refund for the £881.83, and then pay it 31 Jan 2027?
I presume HMRC pay you interest on £1088.18 between 31 Jan 2026 and 31 July 2026?
0 -
It also includes fictional stuff like (for premium bonds) "The current prize rate of 4.65% (estimated for 2026)…" but the one that was previously linked by that poster was even more drivel-laden, with risible comments like "You can still transfer money between ISA providers, but transfers from cash ISAs to other cash ISAs made after April 2026 will count towards your £5,000 “current-year ISA subscriptions” limit"!
1 -
No I’m only in credit by £206.35 which yes I could take as a refund just now.
My 2 POAs were for £1294.53. These were reduced to £1088.18 so I’d paid £206.35 too much.
HMRC then decided that as the 2nd POA would be reduced by the £206.35 credit to £881.83 then I should only pay the £206.35 in July ( basically £0 as the credit will pay it) and the remainder to be paid in January 2027.I’ve no idea if they will pay me interest on that £206.35.
0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.7K Banking & Borrowing
- 254.9K Reduce Debt & Boost Income
- 456.1K Spending & Discounts
- 248.3K Work, Benefits & Business
- 605.8K Mortgages, Homes & Bills
- 179K Life & Family
- 263.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.7K Read-Only Boards