By Tolley

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

  • Repayments
  • Claiming a repayment
  • Repayment to a third party
  • Interest rate on repayment
  • Delay in receiving repayment
  • Over-repayment

If the Tax Return shows that a repayment is due, the taxpayer can claim a repayment or leave it as a credit on his 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 he is 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 he does not have a bank or building society account, he 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 his 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, he can:

  • claim the repayment (direct to his bank account or via a cheque as discussed above)
  • not claim the repayment and allow it to remain on his statement of account to be set against other Self Assessment tax due (eg a payment on account), or
  • 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

More on Underpaid or overpaid tax: