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30 Days for a tax repayment

A client had a sharp decrease in his income and we reduced his payments on account. After preparing the return we discovered even this was too low and the first payment on account more than covered the tax for the year and approximately £1000 was due back ,this was claimed on the return.

Expecting a july POA the client had been transferring £100 a month to HMRC , the last was on 15th of May. 

The repayment wasn't approved and querying it with HMRC they said because a payment was made in the last 30 days a repayment couldn't be issued until the 30 days have elapsed , to make sure everything clears.

Is this correct? Has this always been the case ? Seem ridiculous to me !!


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By ACDWebb
24th May 2012 10:43

It has certainly been the excuse

in recent months. Presumably to make sure they do not issue a refund only for the taxpayer to get their bank to cancel the recent payment as well.

The rights or wrongs of that are another matter.

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By K81
24th May 2012 10:47

Having worked for HMRC I can confirm that their systems will not allow an operator to issue a repayment of a payment from the taxpayer within 30 days of this being entered on their system.

This is supposed to be so that the payment has cleared and not been dishonoured before they refund it. Yes, I know that it doesn't take 30 days for a cheque to clear through your account however when your cheque is received at DMB although they enter this onto their systems straight away it may not actually be banked for several weeks.



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