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HMRC internal manual

Self Assessment Manual

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HM Revenue & Customs
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Repayments: claims made outside a return: claims: overpayment relief

From 1 April 2010 ‘overpayment relief’ as introduced by Schedule 1AB TMA 1970, replaced Section 33/33A TMA 1970 ‘error or mistake’ relief.

From this date, it is no longer possible to make a claim under error or mistake for any period, including any period prior to 1 April 2010. Any claim for a period prior to 1 April 2010 that would have previously been for ‘error or mistake’ relief must now be made as an ‘overpayment relief’ claim.

Any error or mistake claims made before 1 April 2010 will be dealt with under the ‘old’ S33 rules but a taxpayer cannot subsequently make an ‘overpayment relief’ claim in respect of the same mistake.

Time limits
Late or invalid claims
Form of claim
Overpayment Relief claims and the individual is, or was, a student loan borrower making student loan repayments

Time limits

The normal time limit for an ‘overpayment relief’ claim is 4 years from the end of the relevant tax year, so in most cases it is not possible to make a claim for 2004-05 or 2005-06 as these were out of time on 1 April 2010.

However, in exceptional cases the time limit is 5 years and 10 months from the end of the tax year to which the return relates if

  • The claim is in respect of a mistake in an SA return for 2004-05 or 2005-06

And

  • The person was given a notice to make that return more than 12 months after the and of the tax year

In these circumstances

  • An overpayment claim relating to a mistake in a 2004-05 return has to be made before 31 January 2011
  • An overpayment claim relating to a mistake in a 2005-06 return has to be made before 31 January 2012

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Late or invalid claims

If a claim is received for error or mistake, the claim should be returned to the taxpayer explaining that they must now claim overpayment relief and the requirements for a claim.

Where a claim for overpayment relief is received in the incorrect format, the original should be returned to the taxpayer with an explanation as to why the claim has failed and an SA Note made of the action taken. It is also advisable to take, and retain, a copy of the claim.

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Form of claim

The person applying for the overpayment relief must make a claim to HMRC for repayment or discharge of the amount of tax which they believe they should have paid, or should not be due.

A person cannot make an overpayment claim by including it in an individual, trust or partnership tax return. Claims should not be accepted if they are made on an SA return. Overpayment relief claims must be made by the person who is due the relief, except for overpayment relief claims relating to mistakes in partnership returns.

Overpayment relief claims must be in writing and

  • State that the person is making a claim for overpayment relief
  • Identify the tax year for which the overpayment or excessive assessment has been made
  • State the grounds on which the person considers that the overpayment or excessive assessment has occurred
  • State whether the person has previously made an appeal in connection with the payment or the assessment
  • If the claim is for repayment of tax, include documentary proof of the tax deducted or suffered in some other way (see SACM3015)
  • Include a declaration signed by the claimant stating that the particulars given in the claim are correct and complete to the best of their knowledge and belief
  • State the amount that the person believes they have overpaid

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Overpayment Relief claims and the individual is, or was, a student loan borrower making student loan repayments

Where an amount of overpayment relief reduces the amount of student loans, you should advise the PT Ops East Kilbride Student Loans Unit (EKSLU) of the amended Student Loan charge for the year. (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000) The EKSLU will then notify the Student Loans Company (SLC) and the charge will be reduced. Note: You should always notify EKSLU and you should not attempt to contact the SLC direct