Business News - July
HMRC Reduces Tax Rebate Timeframe
Lincolnshire based accountants Moore Thompson are advising individuals to double check their tax codes, and waste no time in applying for rebates where they are due. This follows a note in the small print of the Finance Bill revealing plans to reduce the time limit for claiming overpaid tax back from five years to four.
HMRC have made the decision to reduce the amount of time taxpayers have to claim back any tax they have overpaid, stating that they believe this is sufficient time for the applications to be made. This is likely to become law later on in the year.
The government has confirmed that they will overlook the new four year rule in certain circumstances. These include instances where an error on the part of HMRC has led to the claim being made outside the allotted time, or where the reason for the delay was clearly beyond the customer’s control. They will also be lenient where the taxpayer has given a clear indication of the intention to claim before the time limit expires.
Mark Hildred comments “This is a clearly very uneven playing field. HMRC don’t adhere to a four year limit when they want to demand tax back from taxpayers, but expect individuals to file claims within a reduced timeframe. Taxpayers will need to be even more vigilant in spotting errors on the part of HMRC.”
For more information contact Moore Thompson on 01775 711333
