I tried that, we had a refund on 2020 tax and wanted to leave it on account as we have a CGT liability due in December. I thought incorrectly that once Revenue had our account details they would use that for everything.While filling a recent return I noticed that you can offset a refund to a future period or even another tax liability. Having never done this before, I'm curious if you can roll these refunds over multiple periods or will it refund on the other period if that also ends up a refund.
The money is of no use to me now and with negative interest rates, keeping cash around actually costs money if even a small amount.And why on earth would you do that?
So you will have a liability and need a bit of time to get the bills correct and reconciled. It makes sense if you can live with the cash, its also prudent, but you might be unique most people would reclaim it and left it a specific account for vat or other taxes.The money is of no use to me now and with negative interest rates, keeping cash around actually costs money if even a small amount.
In this specific case it is because the refund I'd be getting is down to some issues with billing and Vat on my sole trader stuff. Forgetting to bill someone means I am due a refund for the period while it'll all be paid back in the either the next period, or the one after.