Repayment of tax ― individuals

Produced by Tolley

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

  • Repayment of tax ― individuals
  • Claiming a repayment
  • Self assessment
  • Setting the HMRC repayment record
  • Taxpayers outside of self assessment
  • R40 repayment claims
  • Overpayment of capital gains tax on disposal interest in UK land
  • Repayment to a third party
  • Payment to a nominee
  • Repayment supplement
  • More...

Repayment of tax ― individuals

If the self assessment tax return shows that a repayment is due, the taxpayer can claim a repayment or leave it as a credit on their statement of account.

The quickest and safest method is for HMRC to make the payment direct to the taxpayer’s bank or building society account and so they are asked to fill out the relevant details on page TR6 of the main tax return (or boxes 12.1 to 12.6 of the short tax return).

If the taxpayer does not want HMRC to have these details or they do not have a bank or building society account, they can request a cheque through the post by entering a cross in box 9 on page TR6. There is no facility to do this on the short tax return and unless HMRC has the taxpayer’s credit or debit card details from a previous tax payment, no repayment will be issued in this situation until the taxpayer or their agent has been in contact to request the refund.

Claiming a repayment

Self assessment

If the taxpayer is due a refund as a result of the tax return being completed, they can:

  1. claim the repayment (direct to their bank account or via a cheque as discussed above)

  2. not claim the repayment and allow it to remain on their statement of account to be set against other self assessment tax due (eg a payment on account), or

  3. ask the repayment to be made to a nominee (discussed below)

Repayments of less than £10 will usually be withheld and kept on the statement of account, as will larger overpayments where a further self assessment payment is due within 45 days (eg a refund is due for the tax year but the payment on account is due within 45 days). Although this is usual practice, HMRC is required to refund any overpayment if the taxpayer specifically requests this.

Where the tax return contains provisional figures, it is likely that HMRC

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