Overpayment Relief Claim Corporation Tax

The overpayment relief was introduced as of April 1, 2010 and replaced Income Tax Capital Gains Tax (CGT).  And Corporation Tax with relief due to error or error. The overpayment relief allows taxpayers to overpay income tax CGT IAS Class 4., Corporation tax or overpaid bank payroll tax.  So now we will talk about overpayment relief claim corporation tax.

According to the HMRC, the rules for overpayment relief are intended to:

  • Give people a way to recover overpayments
  • Align the claims process with the self-assessment and
  • Align the time limits with those of other claims.

Overpayment relief claims must be made within 4 years.  After the end of the fiscal year or accounting period to which the claim relates. An overpayment relief claim can only be made in certain circumstances. For example a taxpayer cannot claim an overpayment exemption unless.  They have had a reasonable opportunity to rectify their tax liability in any other way.  By making or modifying a self-assessment statement.  Or by appealing or modifying the HMRC assessment.  A claim for overpayment relief must be made in writing clearly stating the reason for making a claim.  The period to which the claim relates and the reasons why the taxpayer considers that the overpayment or evaluation has occurred.


Overpayment relief claims

It applies to companies and individual taxpayers who file a tax return. This ‘Overpayment Relief can be claimed for two reasons:

  • HMRC thinks they owe you more tax than you paid, but disagree
  • You made more taxes than necessary because you made a mistake on your tax return.


What to include in an Overpayment Relief claim

Overpayment claims must be made within four years after the end of the tax year in question. They must be presented in writing by the taxpayer to whom the tax relief is owed.  Or his official representative.

You must:

  • Reasons for filing: How an erroneous assessment or error was made on the HMRC tax return.
  • Written evidence showing the amount of tax paid, if you are requesting a refund.
  • The incorrectly calculated total amount of Class 4 taxes and NIC (you or HMRC)
  • Fiscal year in question (April to April)
  • The phrase ‘This claim is made under Section 51, Schedule 18, Finance Act 1998’, if your claim for an Overpayment is related to Corporation Tax.
  • The phrase “This claim is made according to Annex 1AB of the Fiscal Management Act of 1970”, if your claim is related to Income Tax or Capital Gains overpayments.
  • Any other appeal made under this overpayment or under-inflated evaluation.
  • Confirmation’ that you have provided complete and correct information on your claim ‘to the best of your knowledge’.


How to start your claim

Dealing with HMRC can be daunting and generally requires a significant investment of time. Tax refund services can help you with your request for overpayment relief.  If it is based on your mistake or on HMRC. Get a professional tax preparer to complete the paperwork with you or contact HMRC on your behalf.  And ensure that you submit an accurate and fully verified claim.


Before you go, I hope this article on overpayment relief claim corporation tax is helpful for you. 



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