how much interest should we have expected on ct refund

caris

Hi

We got a refund of £875 + £30. taken of this years council tax bill, leaving us nothing else to pay on this years bill after we won a reduction in our CT banding. We wrote to the VOA asking for interest to be paid on our overpayment, and they have just recently sent us a cheque for £50, they said that this was for interest on the overpayment and also included an amount for error on there part, does this seem to be a rather small amount paid to us?, if it is what sort of payment should we expect and what should our next step be?

Thanks in advance for all replies and any info
caris

Mikeyorks

Impossible to say - as you don't specify how far the repayment goes back? If it's just for a year - then you've got over 5%. Which is not at all bad ... when considering HMRC, for example, only pay 3% on tax repaid late.

gingeroodles

Did the VOA pay interest? How does that work? The council tax overpayment is to the local authority, so should not any interest be paid by them?

Mikeyorks

gingeroodles wrote: »

The council tax overpayment is to the local authority, so should not any interest be paid by them?

Not when the repayment relates to the (VOA) banding!