Just a quick question. I have just completed this years accounts for one of my clients and he will be due a small rebate. (self assessment) What it will also mean is that the tax he has paid on account will be refunded too.
He is due to make a payment of £700 approx to HMRC on 31st July. If I get the self assessment submitted online within the next couple of weeks will it kick in the tax rebate and offset it against the payment due or will he have to pay the £700 and then wait for the rebate next year? I know cash flow is tight and this will be one less burden for him to worry about if it can be done.
If he has a payment on account of approx £700 in July to pay then assume he has also paid approx £700 on account toward 2011/12 liabilty in Jan 2012.
If this is the case and his liablity is less than £700 for the year then as he has already paid what is due you should be contacting HMRC advising that you wish the payment on account in July to be reduced to £nil.
When HMRC receive and process the return they will refund £700 less whatever is due to be paid and that will be 2011/12 taken care off.
Thanks Mark, you are correct, he has already paid £700 on account in January. That is really good news, thanks for your help.
John
MarkS wrote:
I assume you are referring to tax year 2011/12.
If he has a payment on account of approx £700 in July to pay then assume he has also paid approx £700 on account toward 2011/12 liabilty in Jan 2012.
If this is the case and his liablity is less than £700 for the year then as he has already paid what is due you should be contacting HMRC advising that you wish the payment on account in July to be reduced to £nil.
When HMRC receive and process the return they will refund £700 less whatever is due to be paid and that will be 2011/12 taken care off.
