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CIOT reports increase in R40 refund errors
According to a new report by the Chartered Institute of Taxation (CIOT), there have been a growing number of R40 computation errors on refunds processed by HM Revenue & Customs (HMRC).
Individuals can use R40 forms to claim tax refunds on tax deducted from savings income. Following the CIOT report, HMRC has now confirmed that there is an issue with R40 computations.
The issue lies in the computation for the Personal Savings Allowance and the Dividend Allowance and HMRC have provided a workaround that should address the issue in most cases.
Despite this, the CIOT have said that they still may be other errors relating to R40 computations that are not connected to these allowances and have suggested claiming a refund using the correct form to check that the computations are accurate.
(R40)Link: Claim a refund of Income Tax deducted from savings and investments (R40)