Issue with

Hi, I am an individual (not-self employed) and have been submitting self assessments every year. I have a repayment plan set up for underpaid tax for the 2022/2023 tax year. In my 2023/2024 return, I overpaid tax and this positive balance has automatically been applied to my outstanding negative balance for the 2022/2023 tax year. However, when I look at the accruing interest payment for my outstanding balance for the 2022/2023 on my HMRC online account, it is clear that the interest is being charged on the full balance I owed from the 2022/2023 tax year, and has not reduced to reflect the self-assessment tax return I submitted in July. I spoke to a HMRC advisor on the phone who insisted that the interest is reduced to reflect the 2023/2024 positive balance, but I have done the calculations and the accruing interest is clearly not reflecting this reduced balance on my self assessment account. Can you please advise what I can do in this situation? Thank you.

Hi ,
 

If you disagree with the interest charged, you can object to this interest - please send your objection in writing to Self Assessment, HM Revenue and Customs, BX9 1AS, and we will review the amounts calculated . Thank you .