Refund POA

Refund POA

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Happy New Year.

A client is due a tax refund for 2010/11, and to make a POA 31.01.12. Overall, a net refund.

Is there a time limit HMRC use, where after said date, the two will be netted of and the net repaid, rather than issure the full refund the require the POA seperately?

Phoned HMRC and our tax advise line we subscribe to, and neither knew.

Thanks

Replies (4)

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By ShirleyM
05th Jan 2012 14:07

Did you request a refund?

My experience is that you can either ask for refund, or for the refund to be offset against the tax due. You cannot ask for a refund (on the tax return) of the balance once the offset has been made.

Probably the easiest solution is to wait for the return to be processed, and the account amended, and then make an online request for a refund for the remaining balance.

EDIT: Happy new year :)

Thanks (1)
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By ACDWebb
05th Jan 2012 14:26

IIRC

it used to be that refunds would be set off against liabilities becoming due within 30 days

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By david5541
05th Jan 2012 15:36

usually 31st october

hmrc will always consider liabilities after any POAS due  and not before:

so if 2010/2011 is filed before 31 October it gives HMRC time to pay back overpaid payments on account for january and july 2010.

 

of course at every stage hmrc will look at the next payment on account but if there is more than three months between the next POA due date and the date the return is processed they are'n't so likely to take the POA off any tax refund.

If you still think a refund is due:

after 31st January  for 2010/2011 or want poa's reduced this can be done....

any issues try the agent account manager at hmrc

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By Big Ade
05th Jan 2012 22:08

Refund POA

"Where there are charges becoming due within the next 45 days, the amount available" - this is a quote from Note 1 of HMRC instructions at http://www.hmrc.gov.uk/manuals/sammanual/sam110140.htm. Full amount can be repaid if specific request made within the 45 day period.

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