Despite not owning a computer, and struggling to fully understand her tax return forms, Tess diligently prepared her own tax returns for several years.
Overpaying tax
She had an annual income of less than £10,000, which was made up of her state pension, a small additional pension, and some self-employment income. However, she had also been including housing benefits, of which she received £3,000 per year, not realising that this income is not taxable and should not have been included.
Reaching out to TaxAid
Tess’s friend informed her that she had been completing her tax returns incorrectly, so Tess reached out to TaxAid. On investigation, it turned out that she had made this same mistake on two further tax returns.
A simple fix with big repercussions
We contacted HMRC and requested an amendment to her latest tax return, but unfortunately, the two other returns were out of time to be resubmitted. We submitted an overpayment relief claim.
This was accepted by HMRC and Tess received a refund for £1,064.63. She now understands not to include housing benefits on her tax returns and can accurately complete these going forward. It’s a simple fix, but one that has saved Tess from increased financial hardship.
She now has received a refund of her tax overpayment and will be paying less in future.