Introduction Background Note
27.Error or mistake relief is intended to provide a final opportunity for taxpayers to reclaim overpaid tax.
28.However, the current rules only apply to tax overpaid on assessments as a result of a relevant mistake in a return. The claim must be made within time limits. On receiving a claim, HMRC determine what amount is just and reasonable to repay and may take into account any liabilities that have not been assessed.
29.Claims under the new rules will apply to all overpayments of tax, ensuring there is a single route to obtain redress and that, as far as possible, disputes are dealt with through the tribunal.
30.A claim will be possible only if no other statutory steps are available to recover an overpayment when a person first becomes aware, or might reasonably be expected be aware, that they have overpaid.
31.The person must also have used any appeal rights that were available and the claim will have to be made within time limits.
32.The new rules also identify who can make a claim in respect of an overpaid amount. They enable the claimant to determine the amount to be repaid, subject to HMRC’s right to enquire into the claim. There are detailed rules on how the amount to be repaid should be determined.
33.HMRC will be able to make an assessment to recover any directly related underpayments, rather than restricting the claim to take account of such liabilities.