Repayment of tax

By Tolley

The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Repayment of tax
  • Repayment Claims
  • Withholding repayment
  • Setting the HMRC repayment record
  • Repayment supplement
  • Claiming a repayment

Self Assessment taxpayers reclaim tax overpaid during the tax year on their Tax Returns for the year. Any taxpayer outside of the Self Assessment regime who is due a repayment for the tax year can claim it by completing a form R40  (known as a Repayment Claim).

Repayments are not made under Self Assessment unless claimed.

Repayment Claims

The deadline for submitting the Repayment Claim form is four years from the end of the tax year. This time limit was amended on 1 April 2012. Prior to this date, the time limit was five years and 10 months from the end of the tax year.

Repayment Claims can be made online , although in order to do this the taxpayer must have a Government Gateway account .

It is also possible to file a hard copy of the Repayment Claim. A paper copy (with a wet client signature) should be sent  to:

HM Revenue and Customs
Pay As You Earn

HMRC will issue the tax refund once the Repayment Claim has been processed. Many taxpayers have experienced delays between submitting the Claim and receiving the repayment; therefore, you may wish to make a diary note to chase up HMRC in, say, six to eight weeks after submitting the Claim.

Withholding repayment

If HMRC opens a compliance check into the Self Assessment Tax Return, any tax repayment due that has not already been repaid will be withheld until the check is concluded.

This often occurs where the taxpayer h

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