Taxpayers are being reminded that the deadline for claiming back tax overpayments from the 2003/04 financial year is fast approaching.
HM Revenue and Customs (HMRC) is reducing the time limit for claiming back overpaid tax to four years, down from the previous limit of five years from the 31 January following the end of the tax year – in other words, about 5 years and 10 months.
This year marks the transition between the old and new time limits for self-assessment taxpayers, meaning anyone who has a claim for the tax year 2003/04 must submit it by 31 January 2010, claims for 2004/05 must be submitted by 31 March 2010 and claims for 2005/06 need to be filed by 5 April 2010.
After that, the deadlines settle into a new annual pattern, with claims for 2006/07 needing to be filed by 5 April 2011, and so on.
For taxpayers outside the self-assessment regime, including those who pay tax through PAYE and those whose income is below the income tax threshold, the new time limits take effect from April 1, 2012.
While it is normally simpler to make claims when the tax return is submitted, it is also possible to claim back tax at a later date, if required.
For more information please contact us.