I was in PAYE employment with the same employer for 15yrs until this summer. I have not been in employment since then however have set up a Ltd Co and will start trading shortly. In the meantime I called my local tax office as I believe I have overpaid my tax for this year 06/07 however they told me that even if i have they wont refund it til the end of the tax year. Does anyone have any experience of this? If i wait til April they will have had my money for 8mths and that hacks me off! I could really do with the money now! Thanks in advance to anyone with any comments or advice
Alternatively, if you set up a Ltd Co and pay yourself through the firm, you could use your tax overpayments to fund your PAYE liabilities until it runs out. I did this three yrs ago in the exact same situation.