Overpayment relief allows taxpayers to reclaim overpaid taxes relating to Income Tax, Capital Gains Tax, Class 4 National Insurance, Corporation Tax or to adjust an excessive tax assessment.
HMRC outlines the rules for overpayment relief, which aim to:
- give a single route for persons to recover overpayments;
- bring the claims process into line with self-assessment claims; and
- align time limits with those for other claims.
Claims for overpayment relief must be submitted within 4 years from the end of the tax year or accounting period in question. However, claims can only be made under specific circumstances. For instance, a taxpayer may claim overpayment relief only if they have not had an opportunity to correct their tax liability through other means, such as submitting or amending a self-assessment return or appealing an HMRC assessment or amendment.
To file a claim, the taxpayer must submit a written request, clearly outlining the reason for the claim, the relevant period, and the rationale for believing that an overpayment or excessive assessment has occurred.
