Overpayments netted off v 31 Jan

Overpayments netted off v 31 Jan

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Perennial problem: What to advise clients to expect.

We send in a tax return showing a 2015-16 overpayment, but also payments required on account of 2016-17.

What determines whether and when HMRC will allocate the 2015-16 overpayment v the 31 January payment?

Until now I had thought that there was simply a 45 day cut-off, so that a return filed before 17 December would result in the 2015-16 refund in full and, likewise, the whole of the first instalment for 2016-17 also then falling due on 31 January, but that later tax return submissions would result in the two being netted off.

But now on 30 November I am already getting cases where they are being auto-netted off.  Not really a major issue - by the end of January the right amount is paid in total, but it is embarrassing (and time consuming) to tell the clients to expect one thing and then find something else happening.

On the blower to HMRC they seemed to think (for a particular case) that the manner and timing of tax payments that gave rise to the overpayment is relevant, and in some cases the 45 day count is completely irrelevant (suggesting that had I filed the tax return in August it would still have been set off against next January).  I distrust what they were telling me on the phone so thought to confirm with you guys.

With kind regards

Clint Westwood

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RLI
By lionofludesch
30th Nov 2016 14:03

I believe it's still a six week gap before the due date.

Certainly used to be.

You can over-ride that, of course, and not claim your repayment.

I'd claim a repayment - using HMRC software if necessary.

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By possep
30th Nov 2016 14:06

Liability within 90 days is a general rule of thumb

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By nogammonsinanundoubledgame
30th Nov 2016 17:17

OK, so far there seems to be no concensus and it is just random. Anything official published anywhere?

With kind regards

Clint Westwood

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