I am self employed and filling in box w85 of the tax calculation guide (or box 20.1 from main tax form). It wants my tax refunded in the year. I received a payment of xxx. But in a letter regarding this, it says "This includes Repayment Supplement arising and already present of xx.
What is Repayment Supplement and do I include the replayment supplement or deduct it?
e.g. repayment total: 1000 repayment supplement: 150. I put 1000 or 850 into the box?
Thanks,
Jon
It's interest cos HMRC hung on to your money too long.
You do not include it.
However, if you're s/e and only now doing your 05-06 return, I very much doubt any repayment you have received relates to the 05-06 tax year. If it did, you wouldn't have received interest on it.
So I suspect you shouldn't be putting anything in 20.1 and shouldn't tick Q20.
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