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Do I owe (or HMRC owe me) Money on my CT620ACK Form?

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    Do I owe (or HMRC owe me) Money on my CT620ACK Form?

    Hi all.

    Can someone explain this please

    I have a CT620ACK form (Acknowledgement of a Company Tax Return).

    Amount Due:
    Tax: £14.00
    Less amounts on which collection suspended £14.00
    Penalties: £0.00
    Interest accrued including any debit Interest £1.12
    Total Due £15.12
    Less already paid including any credit interest £22,345.44
    Amount overpaid £22,330.32

    Do I owe HMRC or do they owe me. If so which figures apply?

    #2
    Originally posted by drivenbygood View Post
    Hi all.

    Can someone explain this please

    I have a CT620ACK form (Acknowledgement of a Company Tax Return).

    Amount Due:
    Tax: £14.00
    Less amounts on which collection suspended £14.00
    Penalties: £0.00
    Interest accrued including any debit Interest £1.12
    Total Due £15.12
    Less already paid including any credit interest £22,345.44
    Amount overpaid £22,330.32

    Do I owe HMRC or do they owe me. If so which figures apply?
    Hi

    From the breakdown you have given it is showing as HMRC owe you £22,330.32, however, I would hazard a guess that this is incorrect as I'd be inclined to say that you haven't mistakenly overpaid HMRC by £22,330 (unless you've had losses of ~£112k)!

    I would imagine that either the CT600 for the period hasn't been submitted/submitted correctly or your payment has been allocated to the wrong period.

    Show this to your accountant and i'm sure they can explain what has happened.

    Martin
    Contratax

    Comment


      #3
      Originally posted by ContrataxLtd View Post
      From the breakdown you have given it is showing as HMRC owe you £22,330.32,
      I thought I may be owed that. I have 5 of these. The last two years since I have not been trading are all ZEROs but the previous 3 are all showing various amount of having overpaid by several £k each year.

      I am trying to wind up my company and had to submit last 5 years accounts.

      So it looks like I have been over paying and that they owe me this money?

      Comment


        #4
        As Martin has pointed out, this is likely to be due to a misallocation of the payments. This is particularly common in your first year of trading and occurs because HMRC will not allow a Corporation Tax Return that exceeds 365 days.

        For example - If you began trading on, say, 30th December 2012 and your yearend was 31st December 2013, you would therefore have two returns, as follows:

        30th December 2012 - 29th December 2013 (365 days)
        30th December 2013 - 31st December 2013 (2 days)

        If you owed a payment of £367 overall, you would be required to make two separate payments of £365 and £2 using two different references. I assume have used just the one payment reference? If so, that is the cause of the misallocation.

        This can easily be fixed, just ask your accountant to contact HMRC and reallocated the payments. It is important this is done sooner rather than later as HMRC's poor system sometimes allows for a rather large, unnecessary refund!

        I hope this helps.

        Martin

        Comment


          #5
          Originally posted by drivenbygood View Post
          I thought I may be owed that. I have 5 of these. The last two years since I have not been trading are all ZEROs but the previous 3 are all showing various amount of having overpaid by several £k each year.

          I am trying to wind up my company and had to submit last 5 years accounts.

          So it looks like I have been over paying and that they owe me this money?
          This still could be a misallocation of your payments by HMRC, unless you have overpaid somehow.

          It is impossible for anybody to advise you without seeing your accounts etc - Ask your accountant to look into this or if you have access to HMRC's online services you should be able to see where this has come from for yourself.

          Martin

          Comment


            #6
            Originally posted by Martin at NixonWilliams View Post
            I hope this helps.
            Not really guys I am now totally confused

            If the line item "Amount Overpaid" has a figure larger than £0 does the HMRC owe me that money. I have 5 letters

            Account Period 01.04.07 to 31.03.08 where "Amount Overpaid" is £22,330.32
            Account Period 01.04.07 to 31.03.08 where "Amount Overpaid" is £9,432.12
            Account Period 01.04.07 to 31.03.08 where "Amount Overpaid" is £3,067.32
            Account Period 01.04.07 to 31.03.08 where "Amount Overpaid" is £0
            Account Period 01.04.07 to 31.03.08 where "Amount Overpaid" is £0

            Does this mean I am entitled to repayment of £34,829.76?

            Comment


              #7
              Originally posted by drivenbygood View Post
              Not really guys I am now totally confused

              If the line item "Amount Overpaid" has a figure larger than £0 does the HMRC owe me that money.
              Yes.

              However, the problem is that HMRC often get this wrong, so what seems like an overpayment may infact not be. It is therefore important that this is checked by your accountant.

              Martin

              Comment


                #8
                If you don't have an accountant, or access to the Government Gateway, I'd recommend giving HMRC a call and asking them to review. I doubt you've overpaid by that amount, it'll just be them allocating payments incorrectly.
                ContractorUK Best Forum Adviser 2013

                Comment


                  #9
                  Originally posted by drivenbygood View Post
                  Not really guys I am now totally confused

                  If the line item "Amount Overpaid" has a figure larger than £0 does the HMRC owe me that money. I have 5 letters

                  Account Period 01.04.07 to 31.03.08 where "Amount Overpaid" is £22,330.32
                  Account Period 01.04.07 to 31.03.08 where "Amount Overpaid" is £9,432.12
                  Account Period 01.04.07 to 31.03.08 where "Amount Overpaid" is £3,067.32
                  Account Period 01.04.07 to 31.03.08 where "Amount Overpaid" is £0
                  Account Period 01.04.07 to 31.03.08 where "Amount Overpaid" is £0

                  Does this mean I am entitled to repayment of £34,829.76?
                  Should read:

                  Account Period 01.04.07 to 31.03.08 where "Amount Overpaid" is £22,330.32
                  Account Period 01.04.08 to 31.03.09 where "Amount Overpaid" is £9,432.12
                  Account Period 01.04.09 to 31.03.10 where "Amount Overpaid" is £3,067.32
                  Account Period 01.04.10 to 31.03.11 where "Amount Overpaid" is £0
                  Account Period 01.04.11 to 31.03.12 where "Amount Overpaid" is £0

                  Comment


                    #10
                    Originally posted by drivenbygood View Post
                    Should read:

                    Account Period 01.04.07 to 31.03.08 where "Amount Overpaid" is £22,330.32
                    Account Period 01.04.08 to 31.03.09 where "Amount Overpaid" is £9,432.12
                    Account Period 01.04.09 to 31.03.10 where "Amount Overpaid" is £3,067.32
                    Account Period 01.04.10 to 31.03.11 where "Amount Overpaid" is £0
                    Account Period 01.04.11 to 31.03.12 where "Amount Overpaid" is £0
                    Have you been paying CT with a different reference each year, or using the same details? Each CT period has a unique payment reference, so things may have got confused if they haven't been used correctly.
                    ContractorUK Best Forum Adviser 2013

                    Comment

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