Will HMRC Pay Me Interest?

jem16

https://forums.moneysavingexpert.com/discussion/comment/81990799#Comment_81990799

2024/25 tax return figures.

Current statement on SA account

I suspect this has happened in an unusual way due to my initial 2025/26 tax return forgetting to tick the box saying I didn’t want tax owed to be coded out. I missed it due to using tax software I wasn’t used to. Tax return amended a couple of days later and also contacted HMRC who confirmed that the £881.84 had been removed from being coded out and was returned to SA. I specifically asked if July POA would be amended and was told no as the total amount owing now was less than £1k so would need to paid in January 2027. Confirmed on my SA account as shown.

jem16

https://forums.moneysavingexpert.com/discussion/comment/81990892#Comment_81990892

Tax owed for 2025/26 doesn’t warrant any POA for 2026/27 I suppose.

In the 22 years I’ve been doing SA I’ve never had any POA apart from this one. A bit of research last year showed that as long as tax paid was 80% or more of tax due then no POA was needed. My 2024/25 tax return crept over that limit.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81990980#Comment_81990980

Yeah, that means the (reduced) second POA was originally going to be collected via your 2027/28 tax code.

But then you have asked for that not to happen and HMRC have created a stand alone charge as I don't think they can undo the transfer of the POA to the tax code (they can stop your tax code being impacted, it's reinstating the original POA as though nothing had happened that I don't think is possible).

Not sure why they wouldn't have used a due date of 31 July 2026 for that replacement charge of £881.84, but that's to your benefit.

When the £206.35 credit is eventually allocated to the tax now payable on 31 January 2027 I would expect you to get a little bit of repayment supplement (interest) credited to your account.

jem16

https://forums.moneysavingexpert.com/discussion/comment/81991011#Comment_81991011

Mix up this year was all my own doing. Normally I just use HMRC’s SA offering but couldn’t this time due to needing SA107 which wasn’t available. I used AbraTax which was good - and free just now - but totally missed the box saying I didn’t want underpaid tax coded out like I normally do.

Yes I’ve no idea why they didn’t ask for it to be paid in July but as you say it was to my benefit.