Hi
I Have an overpayment due from previous year, but have a liability for this year, can I offset the refund against the liability, or do I request a refund?
Thank you
Related resources
Replies (2)
Please login or register to join the discussion.
It could possibly depend on how the overpayment arose
and why it has not been repaid - for example a claim arising from something like a film partnership that may have been stopped while HMRC enquired into the partnership. However assuming it is an overpayment of Self Assessment / Income Tax for one year to be set against SA/IT of a later year and not to some other liability (companies CTSA or PAYE) then it ought to be possible to set one against the other.
It would probably be advisable to write to HMRC, or telephone (in which case keep a note o who you spoke to and when) and ask them to make the set off.
Forced offsets are becoming more common place.
I had a client who is a builder of new houses so is a repayment VAT trader, probably claims back over £100k per quarter. He also had an outstanding CT liability. The accounts team collared his VAT refund and used it to settle his CT liability and repaid the difference.