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Posted Sat, 04 Jan 2025 11:00:48 GMT by TC86420
EIM75020 - I have received a large payment of pension arrears relating to the previous 5 years. I want to amortise the payments to get a tax refund for this year. But will HMRC charge interest on the underpaid tax for the previous years from the date that year's tax was due? This could be more than the tax refund.
Posted Fri, 17 Jan 2025 10:49:05 GMT by HMRC Admin 21 Response
Hi,
No.
The arrears will be reallocated as requested but the due date for payment, which is normally covered by any repayment for the arrears, is the same due date for the tax year the arrears are paid. so for a payment made 2024/25 the due date will be 31/01/2026.
Thank you.

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