Supercharged 2 Posted June 6, 2012 Just thought i'd try and get some advice on here as I know there are a few accountants etc... Basically I've just received a repayment from the HMRC of £1100 for the 07/08 Tax year... Obviously it's always good to get a refund although i'm slightly annoyed that I was contracting at the time and always thought I was overpaying tax as I seemed to be on a strange tax code - I conected them about this at the time and they have a record of my query as I just speoke to them but no actual details. I asked why i've suddenly got this out of the blue and apparently they've just got round to 'consolidating' my tax for that year - the girl I spoke to said this was normal just I find it a bit odd as I only had one source of income that year so nothing difficult about it and also the fact that I flagged up at the time I was paying too much tax! Anyway, the payment also includes a 'Supplement' of £15 which seems a very small amount for nearly 5 years interest - does anyone know how they calculate this as the person I spoke to could no explain? Looking at this page showing historical rates I would expect it to be a lot more - at least 10 times the amount... http://www.hmrc.gov.uk/rates/interest-repayments.htm Any advice appreciated! Share this post Link to post Share on other sites
owen g60 10 Posted June 6, 2012 I had the same dating from 2007 to 2010. I was also contraction at the time... Turns out it is normal when contracting to pay tax from the first penny you earn. I believe they have recently overhauled their computer system hence loads being flagged up. Share this post Link to post Share on other sites
vornwend 0 Posted June 6, 2012 It will depend on when they started the clock running but the rate has dropped a lot over the intervening years and from March 2009 its been zero! meaning there was less than a year from the beginning of tax year 08/09 for your interest to start clocking up. They will also not pay interest on interest. Share this post Link to post Share on other sites
