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TEAP007, Tax Preparer
Category: UK Tax
Satisfied Customers: 760
Experience:  Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years
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My UK tax (website self assessment) said I have overpaid tax

Resolved Question:

My UK tax (website self assessment) said I have overpaid tax last year (I did 2 payments on account 2 x £900 in Jan and July 2008 and I have the option to request repayment of £1811. In other hand my current tax calculation said I have to pay until 31 Jan £1100. My question is: Can I using the self assessment site to net off the balances (+£1811 -£1100 = +£711) and so only request repayment of £711? Or I have to request repayment in full of £1811 and still pay HMRC £1100? It does not look logical to ask me to do advance payment on account then give me back the money six months later! So can I also request to reduce the payment on account for the future?
Submitted: 7 years ago.
Category: UK Tax
Expert:  TEAP007 replied 7 years ago.

Unless I am mistaken there is scope on the tax return to enable you to claim repayment of only part of a repayment as opposed to the total. If you do not claim repayment of the full amount then the balance would remain on your self assessment account and would be set off against any other liabilities for later periods.


A check of the online return will let you see it

Customer: replied 7 years ago.
Could you please tell me where in the self assessment I can report or claim part of the repayment and so the tax calculation will change. I know how to claim the repayment from the account but this has no link with the tax calculation for the current year. Thanks!
Expert:  TEAP007 replied 7 years ago.

If you do not reclaim the repayment the sum overpaid will stay on the self assessment and be set off against later duties that are payable.


On looking at your figures I cannot quite work out the logic of your figures. You say that you paid 2 payts on account of £900 making £1,800 but you have overpaid £1,811 thereby suggesting that your tax payments should have been NIl Then you say that you have to pay £1,100 by 31st Janaury 2009. could you perhaps explain why you should not have paid anythign as POAs last year but this year it should be £2,200.


If you do not claim the repayment it will be set off against the POA due on 31st Janaury and then you could subsequently claim repayment of the balance

Customer: replied 7 years ago.
Hi, it is very complicated. When I did my self assessment last year I discovered my tax code was completely wrong and I was paying much less tax than I should. By last year calculations I paid on 31 Jan 2008 £3832 it was the Total Income Tax due for 2006-2007. Plus I was asked to do 2 POA on in Jan/08 as well 900 and another one in Jul/08. Of course in Jan/08 when I realised my tax code was wrong I asked to change and correct my tax code. So they replaced 1393L (incorrect code by 448L (correct code). Since than I understand the meaning of the tax code and I also understand the principle of the POA. What confuses me is that: I have made POA for the Tax 2007-2008 by in the self assessment I could not find a place to inform that I have already made POA (2x£900 = 1800). So my calculation of tax 2007-2008 has no POA and so I have tax to pay on the 31 Jan, £1100, despite having according to my account an overpayment (which is the POA done in Jan & Jul08 of £1800. In my opinion would be more logical to report the tax this way: I have a credit of £1800 (POA from 2008) and also a debt of £1100, so the calculation in the site should show that I only have to receive (tax repayment) of £700. Unfortunately I don't think this is possible. The only solution I can see is to claim the repayment tomorrow (£1800) and on the 31 Jan 2009 pay the £1100 I have to pay. This did not sound very clever for me but it seems to be the only way round. The fact I have a credit tax and a debt tax are 2 separate things that I cannot (via self assessment) put together to net off the balances. I hope this is more clear now. Because my tax code was so wrong in the past this is taking 2 tax years to be completely solve. Hopefully for next year, with my tax code corrected since Jan 2008 I will not have this kind of problem with POA. Could you please comment and give me your opinion (by the way, I not from the UK and so it took me a good time to understand the tax code and calculation in the UK. As a non uk resident in my first 2 year here I did receive tax refund and my tax return was prepared by a 3rd party company. Since 2006 I became Uk resident, they (HMRC change my tax code incorrectly) and I started to do my tax by myself. As I said, I had to learn how to do it and now I have a better understanding, but the fact I cannot combine my credit and debt tax in the tax calculation is very difficult to get. THANKS!
Expert:  TEAP007 replied 7 years ago.

Shock and Horror I cannot find the opportunity to only claim part of the repayment - contrary to my earlier thoughts. SORRY -


Payments on account usually arise where you have a source of income (e.g. land & property or self employment etc) that cannot be recovered during the tax year and therefore would normally be payable on the 31st January following the year of assessment However the legislation says that you will pay 50% of the liability on the previous 31st January and again another 50% on 31st July based on the previous years tax liability leaving you to pay any balance that arises based on the actual figures in due course.


Having looked at it you could either do what you suggest or leave the repayment so that it will be set off against the next POA and then you could in due course reclaim the amount standing on your SA statement.


I hope this explains my position and please get back if you still have a problem

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