Due to starting preparation work early, I was able to submit the first 2019/20 tax returns online to HMRC on Monday 6th April.
These were processed by HMRC online next day, and in the case of refunds these then started their journey through HMRC’s checks and systems for issue.
Despite two bank holidays, after only 7 working days the refunds are now being issued. As the refunds were requested to the client’s bank accounts, these will be credited the following day.
Early refunds are especially welcome this year, so it is recommended that 2019/20 tax returns are completed as soon as all the information is available.
In addition to receiving early refunds, there are also several other benefits to completing your 2020 tax return as soon as possible:
- The currently estimated second payment on account for July 2020 can be amended in line with the actual figures from the submitted tax return.
- Your 2020/21 Notice of Coding can be reviewed, to ensure that the correct deductions are made in the year to 5th April 2021.
- Although the 31st July 2020 second payment on account may be deferred this year, it is important to calculate the tax liabilities through to July 2021 for planning purposes. The 31st January 2021 payment amount may be high if it is comprising two payments on account and also a balancing payment.