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How to get a s419 refund - quicker

16th Mar 2010
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 I eventually got through to a real tax inspector the other day to chase up one of my lingering s419 repayments and he helpfully took the time to explain the system, so I though I'd share this wisdom with you:

1. Always refer to a claim for a CT or s419 repayment in your covering letter - it gives you another chance at being spotted.

2. Always highlight the repayment due in the CT computation. Don't just refer to a loss being carried back or a loan being repaid - set out in black and white how much you expect the repayment to be, and why. S419 repayments are made for the year in which the original payment was made, not the year in which the loan is cleared, so you can help HMRC considerably if you can refer to the accounting period(s) when the original s419 payment was made.

3. DON'T try to show s419 repayments on the CT600 itself - there's nowhere to put them. If you try to enter a negative tax figure to make the tax payable figure agree with your comp you'll simply double up the tax payable as the CT computer system will capture the negative figure as a positive one!

4. You don't need to submit a CT600A in a period where no new loans are made. Check your CT software - it may well generate the pages because there's a loan brought forward, but you'll see that the entire CT600A is actually blank!

5. Always tick the box on the first page of the CT600 "A repayment is due for an earlier period" as once again this will alert the processing staff at HMRC that they need to pass the return up the line for manual intervention.

With any luck those tips will enable you to get your clients' money back sooner, and without the need for a lot of follow up.

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By Bill A
08th Apr 2010 09:14

Balderdash - they should just do the job right

"1. Always refer to a claim for a CT or s419 repayment in your covering letter - it gives you another chance at being spotted."

 

So how does this help when electronic filing??????????????

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David Winch
By David Winch
02nd Sep 2011 09:54

Electronic filing

Methinks when filing a CT return online one can attach a document - so why not attach a short repayment computation specifying the amount repayable under s419 for each (earlier) accounting year?

On the online return itself one can 'tick' the box to indicate that a repayment is due for earlier years.

David

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