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Bank of HMRC - overpaid tax interest

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    Bank of HMRC - overpaid tax interest

    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?
    Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.

    #2
    Originally posted by Hobosapien View Post
    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.

    Comment


      #3
      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.
      Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.

      Comment


        #4
        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.
        Down with racism. Long live miscegenation!

        Comment


          #5
          https://www.gov.uk/government/public...interest-rates

          Comment


            #6

            Late payment interest rate: 3%

            Repayment interest rate: 0.5%

            Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.

            Comment


              #7
              This

              Originally posted by Hobosapien View Post
              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!

              Comment


                #8
                Originally posted by craigy1874 View Post
                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 ...

                Comment


                  #9
                  Originally posted by borderreiver View Post
                  Or even an email ...
                  HMRC only send you letters for paying money back even if you contact them by email.
                  "You’re just a bad memory who doesn’t know when to go away" JR

                  Comment


                    #10
                    Check what Gideons family do, they are usually very "shrewd" when it comes to tax matters
                    The Chunt of Chunts.

                    Comment

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