Bank of HMRC - overpaid tax interest

[Hobosapien]

Just received a message from HRMC saying I'd overpaid tax on my self assessment and was due a refund of over £450, including just under a fiver in interest. Goes back to small overpayments since 2010 apparently when looking at the breakdown.

Wasn't sure they could be used as a savings bank this way, thought interest on overpayments was a myth. The take with one hand (interest on late payments) but not give back with the other (interest on overpayments).

Only downside is they need my personal account to pay into, so they'll then be able to take payments in advance, or whatever rules they come up with for raiding accounts for tax they see due in their crystal ball.

I might make some large payments on account to offset the new divi tax.

Reminds me of my dad once 'fleecing' Dixons by paying back too much on a credit account so he was getting paid interest instead of them. Not sure why they didn't just refund the difference but back then I remember them chasing him to take it back.

Any other alternative saving methods that may be paying more than the typical savings account these days?

[BrilloPad]

Any other alternative saving methods that may be paying more than the typical savings account these days?

Don't ever save. Just use your money on deposits for BTLs.

[Hobosapien]

BLTs are more appealing at the moment. Only pile of bricks I'm likely to buy anytime soon is abroad.

Besides, not all savings are savings. Warchest needs stashing somewhere so the more 'safe' squirrel holes the better.

[NotAllThere]

With my local tax authority (Switzerland), you can pay in advance. On anything up to 150% of the tax owed, you get a reasonable interest rate.

[pr1]

https://www.gov.uk/government/public...interest-rates

[Hobosapien]

https://www.gov.uk/government/public...interest-rates

Late payment interest rate: 3%

Repayment interest rate: 0.5%

[craigy1874]

This

Just received a message from HRMC saying I'd overpaid tax on my self assessment and was due a refund of over £450, including just under a fiver in interest. Goes back to small overpayments since 2010 apparently when looking at the breakdown.

Wasn't sure they could be used as a savings bank this way, thought interest on overpayments was a myth. The take with one hand (interest on late payments) but not give back with the other (interest on overpayments).

Only downside is they need my personal account to pay into, so they'll then be able to take payments in advance, or whatever rules they come up with for raiding accounts for tax they see due in their crystal ball.

I might make some large payments on account to offset the new divi tax.

Reminds me of my dad once 'fleecing' Dixons by paying back too much on a credit account so he was getting paid interest instead of them. Not sure why they didn't just refund the difference but back then I remember them chasing him to take it back.

Any other alternative saving methods that may be paying more than the typical savings account these days?

Really just sounds like a scam - i'd be very careful! Please tell me the notification wasn't in the form of a text message!

[borderreiver]

Really just sounds like a scam - i'd be very careful! Please tell me the notification wasn't in the form of a text message!

Or even an email ...

[SueEllen]

Or even an email ...

HMRC only send you letters for paying money back even if you contact them by email.

[MrMarkyMark]

Check what Gideons family do, they are usually very "shrewd" when it comes to tax matters