The next step

Detailed commentary on the time limits for submitting self-assessment tax returns

[Memo]

Forgotten tax relief - too late to make a claim?

Usual deadline

HMRC is a stickler for rules and regulations especially those relating to the timing of claims for tax deductions and reliefs. Except where legislation specifies differently, the general rule is that it must be claimed within four years from the end of the tax year to which the claim relates for personal taxes, and four years from the end of the accounting period for corporation tax. However, even this time limit comes with conditions.

Self-assessment

As an individual or company you usually have one year from the self-assessment deadline for submitting a tax return in which you can amend it, e.g. making a claim you previously overlooked or increasing one you made.

Outside the time limit your only option for obtaining the tax relief you’re entitled to is to apply to HMRC for overpayment relief .

For detailed commentary on the time limits for submitting self-assessment tax returns, visit https://www.tips-and-advice.co.uk , Download Zone, year 22, issue 3.

Tip. Since 2017 overpayment relief also applies to HMRC “simple assessments” for individuals. That is, where you aren’t required and have not submitted a self-assessment tax return and instead HMRC has issued you with a simple assessment which omits or understates tax relief you’re entitled to.

Claiming overpayment relief

Where you’re too late to amend your tax return because of the self-assessment time limits you can make a claim for overpayment relief, as long as it reaches HMRC within the four-year time limit mentioned above.

Trap. The trouble is HMRC insists that your claim is in the format it specifies or it can refuse it. This might prove fatal to your claim if you sent it close to the deadline, as by the time HMRC declines to accept it, it might be too late to submit it in the correct format. It’s therefore vital you get it right first time.

Procedure

Your claim for overpayment relief must be in writing and signed by you or someone entitled to sign on your behalf, e.g. a person who has a lasting power of attorney for your financial affairs, not your accountant. For a company the claim must be signed by someone with authority to sign for the company, e.g. a director. All claims must include the following information:

• the claim is being made under “sch 1AB Taxes Management Act 1970” for personal taxes or “para. 51 schedule 18 Finance Act 1998” for corporation tax
• the tax year the overpayment relief is for
• why the overpayment arose
• the amount of tax that has been overpaid
• if you’ve previously made an appeal in connection with the overpayment; and
• if the claim results in a refund, proof that the tax being reclaimed has been paid.