HMRC are witholding overpayment

[Barry.dy]

I have an IVA whick commenced October 2009.I am self employed in the construction industry and have 20% deducted at source.On completion and submissionof my 2009-2010 Tax Return,I am owed an overpayment of £1600 but HMRC are witholding the money.Can you please advise

[Michael Peoples]

You should speak to your IP who can find out why HMRC are withholding the money. They can offset pre IVA rebates against Crown debts and the balance goes to the IVA but post IVA rebates are not windfalls. The fact that you are receiving a rebate for a full year yet only part of the repayment is pre IVA and part post IVA is something your IP should be able to advise upon.

[MelanieGiles]

There would appear to be no reason for this, and the refund should be returned to you once your IP gets involved.

[Barry.dy]

Michael-Thank you for your quick response.There are no Crown debts.I wasn't aware that HMRC could withhold the refund of overpayment as it wouldn't have got to them under the PAYE system!.I will ,however contact the IP to get a resolution of the matter. Once again,many thanks.
Barry

[Barry.dy]

Melanie-Thank you for your response also.Our posts must have crossed as I am such a slow typer.You will note my respose to Michael and will follow up with my IP.
Many Thanks
Barry