Refund from HMRC but it's a mistake!

[Zorra]

I completed my tax return in September (paper submission) and had a letter saying I owed them £30 which I duly paid. Then on 3rd October a letter saying I have overpaid about £2,000 in tax and they will repay me. I just ignored it as a mistake but the money came in today!

I didn't pay the tax they mention on the second letter: I thought I might be owed about £700 but I didn't even pay this much.

So, what should I do? Ring and ask for a review? Put the money in a safe account until the ask for it? Spend it and hope for the best (am guessing not this

I would ring and ask for a review.

If you spend it, and HRMC then realise their mistake and ask for the money back, you'd be in a bit if a mess.

I'd put it in an interest-paying deposit account and do nothing whatsoever until you complete your next year's tax return. They may ask for it back eventually or they may not but my attitude to HMRC is 'answer all questions honestly and fully but don't volunteer information if they don't ask....'

For next year's self-assessment, I'd recommend you invest about £25 in a copy of TaxCalc's personal taxation software. Reason for that is that their software gives you a running total as you go along of whether there is any money owed or due. HMRC seem not to quibble with the end number.

I second putting it in a high interest account for when they ask for it back.

Dh had a similar thing, they refunded him 4k, and they told us they would claim it back next year.

We, however, went to NICE! I dont recommend doing that.

Don't mess with the tax man! They will find their mistake eventually, and you will have to pay the money back.

Either tell them now, or put the money somewhere interest bearing. But don't spend it unless you're sufficiently flush that you can afford to pay it back when they eventually do ask for it.

Thanks, agreeing with you all. Especially Cogito's 'answer all questions honestly and fully but don't volunteer information if they don't ask....' This has always been my policy! Will bank it elsewhere and see what happens.