Mike Freer MP is to bring forward a Bill that would force HMRC to refund those who have overpaid their taxes in the same timescale as those that owe money to the taxman.  

Currently, if tax is due, individuals and businesses must pay HMRC within 30 days of the due date or face fines.  But when the situation is reversed the HMRC face no such penalties.

Speaking from Westminster, Mike Freer said, “Small businesses’ takings can vary hugely month-to-month and individual’s circumstances can change, meaning they find at the end of the financial year that they have overpaid their tax.  HMRC are far too slow to repay and do not seem to appreciate the huge cash-flow pressures that many people are under.

When businesses owe money they either pay up in 30 days of the due date or they are fined.  My Bill calls for equal treatment, so the taxman and taxpayers operate under the same terms.  Financial penalties focus the mind, and I believe a rule-change would see faster repayments.”

The Tax Refunds Regulation (Review) Bill, being introduced as a 10 Minute Rule Bill, will be heard in the Commons on Wednesday 7 December.