taxes Archives | Taxfile

Understanding Overpayment Relief

February 21, 2024/in Overpayment Relief, Tax overpayment/by Taxfile

by Mohamed at Taxfile.

Have you ever felt that you’ve paid more in taxes than necessary? Whether due to calculation errors, changes in personal circumstances, or evolving tax laws, overpayments can happen to anyone. The good news is that there’s a way to reclaim those excess funds through the process of overpayment relief claims. In this comprehensive guide, we’ll walk you through the ins and outs of reclaiming your hard-earned money.

What is Overpayment Relief?

Overpayment relief allows you to recover money you’ve mistakenly paid to HMRC within four years after the end of the tax year in which the overpayment occurred. It’s a financial safety net that allows you to correct discrepancies and regain control of your finances. Understanding the concept is the first step toward putting your overpaid taxes back where they belong – in your pocket.

Types of Overpayment

The overpayment must be for income tax, capital gains tax (CGT), Class 4 National Insurance contributions (NICs), or corporation tax. It applies to both overpayments and excessive assessments.

Eligibility Criteria

You must have a valid reason for believing you overpaid tax. This could be an error in your tax return, incorrect coding by HMRC, or changes in your circumstances affecting your tax liability. You cannot claim overpayment relief simply by correcting your tax return after the deadline.

Claiming Overpayment Relief

You need to submit a formal claim to HMRC in the correct format, explicitly stating that it’s for “overpayment relief.”

The claim should clearly identify the tax year, the amount you believe you overpaid, and the reason for the overpayment. Include any supporting evidence, like documents confirming income, deductions, or expenses. Your claim must be submitted within specific time frames — generally, four years from the end of the tax year for which you’re claiming. Special rules apply for late claims.

Claim Format

Your claim must be made in writing, stating the tax year, the amount overpaid, the reason for your claim, and whether you’ve previously appealed. You cannot claim through your tax return.

For more information please refer to the HMRC website or get in touch with Taxfile.

Tax & Accountancy Help from Taxfile

At Taxfile we are skilled at identifying opportunities for additional savings, deductions, and credits that individuals might overlook. You can call us on 020 8761 8000 to schedule a free 20-minute, no-obligation consultation for any tax-related matter — or simply use the buttons below:

020 8761 8000 Book Appointment Contact Us

Taxfile is a tax advisor and accountant in Tulse Hill at 25 Thurlow Park Road, Tulse Hill, London SE21 8JP. We’re on the corner at the junction of Birkbeck Hill and the South Circular (A205), within easy walking distance of Tulse Hill station (map). We also have a Dulwich office as well as helping people with tax and accountancy in Devon and Cornwall.

Tax Return Accountants

December 6, 2023/in Accountancy, Accountants, Dulwich, London, Self-assessment, Self-employed, South London, Tax, Tax advisors, Tax returns, Tulse Hill/by Guy Bridger

HMRC issues tax returns each year to those who meet the criteria; you may be self-employed or a higher earner from employment income. The tax return software available online will calculate your tax liability if you fancy giving it a try yourself. However, most people use accountants and tax advisors who might, in their wisdom, be able to save you money and in some circumstances give you guidance and good advice. Indeed, Taxfile can help in all these areas and we explore this in today’s article. Read more

Making Tax Digital for Income Tax Self Assessment (MTDfITSA). Are you ready?

September 1, 2020/in Buy to let, HM Revenue and Customs, HMRC, Income & Expenditure, Income tax, Landlords, Making Tax Digital, MTD, Self-assessment, Self-employed, Software packages, Sole traders, Tax return, Tax returns, Taxes, Taxfile/by Taxfile

The Government has now pencilled in what they regard as a firm date to implement MTD for ITSA, for all landlords and business owners that have an income above £10,000.

The next accounting period starting on or after 06/04/2023 that meet the above mentioned criteria will need to be compiled & submitted via MTD-compatible software.

If you are self-employed or a landlord with a turnover greater than £10k, how will MTD affect you?

1. You will need to submit a quarterly summary of your businesses income & expenses to HMRC using MTD-compliant software. Yes, you read that correctly. No longer can you do your tax return in one go, with a lot of our customers leaving it to December or even January before they come to see us. As your tax agents, we would need your business transactions every 3 months, to compile, compute, and submit through to HMRC.

The timing of the quarterly updates is determined by the accounting period of the business but typically the 4 quarters will be:

6 April to 5 July
6 July to 5 October
6 October to 5 January
6 January to 5 April

2. All your income and expenses will need to be individually logged electronically. The technical term used is that every business transaction will have an ‘electronic signature’. These signatures will then be submitted to HMRC every 3 months and you will receive an estimated tax projection for the year based on the information provided.

3. At the end of the year, any non-business information, foreign income, other income, etc is added to finalise your tax affairs and submitted using the MTD-compatible software. This replaces the need for a Self Assessment tax return. You will then have Read more

Posts