Tax repayment claimed back by HMRC

heronbommie

In ‘24 I completed a self assessment for 23/24 which included PAYE pay and pension as I retired in Nov ‘23. (No other taxable income).

The calculation was in my favour and a repayment of £250 was credited, which I took as a cheque and I informed HMRC that I didn’t need to complete self assessment for the following year.

I have now received a note to say that they will be recovering the self assessment credit of £250 as I didn’t amend the 23/24 tax return to include this amount.

Is this correct? Why would I need to amend the return when the calculation is in my favour?

Thanks

eskbanker

That doesn't make sense - the SA process generates a calculated liability for the year in question, and then settlement (in either direction) follows thereafter, but that doesn't entail any adjustment of the return, as this will still accurately convey the taxable income, etc. Are you able to share any (suitably redacted) photos of the relevant paperwork?

heronbommie

Thankyou, I thought it was strange.

I rang HMRC and the guy I spoke to didn’t understand it either but didn’t give any advice apart from to wait a couple of weeks to see if the account shows a payment required as it’s neutral at the moment.

I’ll copy the letter as follows…

Notice to Pay due to repayment not declared in Self Assessment Return

Thankyou for your voluntary online return for 23-24 received online June 2024.

On 30 July 2024 a PAYE repayment of tax for £250.33 was issued to you by us.

As you haven’t amended your 23-24 tax return to include the 23-24 PAYE repayment we need to recover this amount from your Self-Assessment credits of £250.

That’s it really. Confused!

eskbanker

Yes, that is baffling - if your 2023/24 return is an accurate and complete record of your 2023/24 income and tax paid, then I fail to understand either why or how you'd retrospectively go back and adjust that! I'm also confused about why they'd take two years to action this, is the letter definitely genuine?

heronbommie

There’s an apology for a late reply at the start and yes I’m sure it’s genuine the details and figures are correct.

If an amount to pay or my tax code alters I’ll chase it further.

Isthisforreal99

It reads to me that you received 2 repayments - one outwith Self Assessment via the PAYE system (the 30 July refund) and the second via what appears to be an unsolicited Self Assessment return (the word voluntary being used). Why did you submit a Self Assessment return when there appears no need to have done and when was this repayment made?

sheramber

I agree. That indicates you received a repayment through PAYE .

Did you claim a repayment when you retired?

For some reason you completed a self assessment return for 23/24 but did not include that repayment you had received through PAYE.

heronbommie

There was only one repayment from the self assessment credit, the wording as PAYE I think refers to my method of tax payment with wage and pension. My pension didn’t change during this period or since.

sheramber

https://forums.moneysavingexpert.com/discussion/comment/82137692#Comment_82137692

Ask HMRC when the PAYE repayment was made as they think there was an in year repayment made.

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/82137692#Comment_82137692

They wouldn't have called it a PAYE repayment if it came from your Self Assessment return.

Go onto your personal tax account and see if a separate P800 calculation was issued for that year.