SAM114045 - 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.

Note: A Partnership cannot make a claim in respect of overpaid tax because a partnership does not pay tax. Income tax is charged on each partner separately, not on the partnership, therefore claims can only be made by the partners in respect of their own individual returns.  If an overpayment relief claim arises from a mistake in a partnership self-assessment return all the relevant partners must agree to the claim whether or not they themselves have overpaid or been over-assessed as a result of the mistake. See SACM12045 for more information.

Time limits
Invalid claims
Late claims
Form of claim
Overpayment Relief claims and the individual is, or was, a Student/Postgraduate loan borrower making Student loan and/or Postgraduate loan repayments

Time limits

The normal time limit for an ‘overpayment relief’ claim is 4 years from the end of the relevant tax year.

Invalid claims

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 how a valid claim can be made (see below for information about claims that are made close to the end of the time limit for making it). An SA Note should be made of the action taken. It is also advisable to take, and retain, a copy of the claim.

If a person tries to make a claim or election in time but it is deficient or unsatisfactory in some way (see SACM10010), explain to the person that they have not made a valid claim and what they need to do to make a valid one.

If you are writing to the person to invite a valid overpayment relief claim after or just before the end of the time limit for making it, give the person a reasonable extension of time to send you a proper claim. The 14 days that we use when we send back unsatisfactory return forms would usually be appropriate. If there are particular circumstances that mean 14 days would be insufficient, for example, the person being overseas, then you can allow a longer reasonable amount of time.

Late claims

There is no specific legislation giving the commissioners discretion to accept a late overpayment relief claim. HMRC may still accept a late overpayment relief claim on a discretionary basis. The way in which HMRC uses this discretion depends on the facts of the claim so, when deciding whether or not to accept a late claim, you must follow the general guidance at SACM10040.

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 not have paid or should not have been due.

Claims should not be accepted if they are made on an SA return and overpayment relief claims must be made by the person who is due the relief.

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, they must have documentary proof of the tax deducted or suffered in some other way, as they may be required to provide it at a later date (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

Overpayment Relief claims and the individual is, or was, a Student/Postgraduate loan borrower making Student loan and/or Postgraduate loan repayments

Where an amount of overpayment relief reduces the amount of Student loans and/or Postgraduate loan (PGL), you should advise the PT Ops East Kilbride Student Loans Unit (EKSLU) of the amended Student Loan and/or PGL charge for the year. Email dl-studentloans@internal.hmrc.gov.uk with the customer's National Insurance Number, Unique Taxpayer Reference, and the year and details of the amendment. A separate email must be sent for each customer.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