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Claiming a tax refund

If you think that you have paid too much tax to HMRC you can usually claim back any overpaid tax. The exact method for making a claim depends on a number of factors including whether or not you complete a Self-Assessment return and the length of time that has passed since the tax was overpaid.

Claims can usually be backdated for up to four years after the end of the relevant tax year. This means that claims can still be made for tax refunds dating back as far as the 2017-18 tax year (which ended on 5 April 2018). The deadline for making claims for the 2017-18 tax year is 5 April 2022.

According to HMRC you may be able to claim a refund if you have paid too much tax on:

pay from your current or previous job
pension payments
income from a life or pension annuity
a redundancy payment
a Self-Assessment tax return
interest from savings or PPI
foreign income
UK income if you live abroad
fuel costs or work clothing for your job.
HMRC is currently undertaking the annual reconciliation of PAYE for the tax year 2020-21. HMRC use salary and pension information to calculate if the correct amount of tax has been paid. Where the incorrect amount of tax has been paid, HMRC use the P800 form to inform taxpayers. HMRC expects to send all P800 forms by the end of November 2021. The P800 will notify you if you have overpaid or underpaid tax.

If you need any assistance in understanding and checking a P800 form or making a claim for overpaid tax, we are here to help.

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HMRC reminder that you can defer tax

HMRC has issued a press release to remind Self-Assessment taxpayers of the opportunity to defer Income Tax payments due on 31 July 2020. This opportunity is available to taxpayers due to make their second payment on account for the 2019-20 tax year that is ordinarily due at the end of this month. Taxpayers who take up this offer will see the payment due date deferred until 31 January 2021.

This is an automatic offer with no applications required. You can opt into the deferral offer by simply not paying your tax bill due by the 31 July 2020 due date. HMRC will then (we are told) automatically update their systems to show payment has been deferred and no interest or penalties will be incurred providing it is paid in full by 31 January 2021. You should also remember to cancel your direct debit if you have one setup to ensure that HMRC do not take the payment.

Remember, this is only a deferral and any tax owing will be due on 31 January 2021. This will be in addition to the usual final payment deadline for any remaining tax due for the 2019-20 tax year. In addition, the 31 January 2021 is also the payment date for any Capital Gains Tax due in relation to the 2019-20 tax year and the due date for the first payment on account for 2020-21.

If you do not wish to take advantage of this deferral you can continue to pay your tax bill as normal.

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Tax Diary July/August 2020

1 July 2020 – Due date for Corporation Tax due for the year ended 30 September 2019.
6 July 2020 – Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NICs.
19 July 2020 – Pay Class 1A NICs (by the 22 July 2020 if paid electronically).
19 July 2020 – PAYE and NIC deductions due for month ended 5 July 2020. (If you pay your tax electronically the due date is 22 July 2020)
19 July 2020 – Filing deadline for the CIS300 monthly return for the month ended 5 July 2020.
19 July 2020 – CIS tax deducted for the month ended 5 July 2020 is payable by today.
31 July 2020 – Self-assessment second payment on account for 2019-20 is due. The government has announced measures that will allow many tax payers to delay this payment until January 2021, if they wish.
1 August 2020 – Due date for Corporation Tax due for the year ended 31 October 2019.
19 August 2020 – PAYE and NIC deductions due for month ended 5 August 2020. (If you pay your tax electronically the due date is 22 August 2020)
19 August 2020 – Filing deadline for the CIS300 monthly return for the month ended 5 August 2020.
19 August 2020 – CIS tax deducted for the month ended 5 August 2020 is payable by today.

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Last Call ! Option to defer VAT payments ends 30 June 2020

The option to defer your VAT payments ends on 30 June 2020. The Coronavirus VAT payment holiday gave businesses the chance to defer the payment of any VAT liabilities between 20 March 2020 and 30 June 2020.
Businesses that took advantage of deferring their VAT payments should consider the following:                                                                                                  – Re-establish any cancelled direct debits in enough time for HMRC to take VAT payments due from 1 July onwards.
– Going forward, ensure that VAT returns are submitted as normal.
– Pay the VAT in full on any payments due after 30 June 2020.
It is important to note that where the payment of VAT has been deferred, any VAT due must be paid by 31 March 2021. Businesses can also make additional payments with subsequent returns. No interest or penalties will accrue on deferred payments that are paid by the new due date.
There is no application process required to request this deferral as permission is automatic and all VAT-registered UK businesses are eligible. The choice to defer VAT payments was optional and businesses could still choose to pay any VAT due as normal. The deferral did not cover payments for VAT MOSS or import VAT. HMRC has continued to process VAT reclaims and refunds as normal during this time.

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