I'm looking for advice as to billing HMRC.
A client of mine submitted his first SA100 in 2009/10 carrying back losses to 2006/07 under s74.
A refund of around £3,300 was due and after much chasing and deliberation about the "Bristol" repayment-holding office, this was repaid.
Months later, a further cheque for the same amount appeared - very nice. But being the good little tax payer and accountant duo that we are we returned the cheque with an explaining letter.
This was returned on 09/02/2011 and has still not been logged as received.
This week, a further £1,300 has been repaid. Apparently relating to a PAYE Overdeduction in 2009/10 (which was already dealt with in the 2009/10 SA100) and the same in 2007/08.
The 2009/10 is simply another over-repayment.
The 2007/08 element arises because HMRC's records are evidently wrong. They have income at £5.7k; P60 shows £18k; P60 is electronically generatted and the employer is reputable so I trust that the correct submission was made.
I now have problems:
- HMRC are wasting my time and the client's time in returning overpaid cheques.
- No HMRC call centre staff seem bothered at the fact HMRC can simply write out cheques on a whim, twice.
- The client's payment record is possibly not intact and correct at HMRC end.
- Implications for client's NIC record.
I don't feel it is fair to bill the client. I don't feel it is fair not to be compensated for HMRC's consistent blunders.
How can I bill them?
Any help would be greatly appreciated.
Kind regards,
Chris
EDIT: I should also add that the "extra" repayments are not logged on the client's SA Account per our online services - it is as if the client could simply walk away with the money; worrying!
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Yes, you can
I have done this before and received a nice little cheque from HMRC.
You first of all have to sort this mess out. Keep a note of your time as HMRC like to see a detailed breakdown.
You then have to raise a fee to your client and once the client has paid the fee, send in a compensation claim to HMRC.
The claim should include:
1. The details re the additional work involved and time sorting it out.
2. A copy of the fee note (stamped as paid if possible) issued to your client
3. A detailed list of your time for the work involved
If this is a genuine set of errors from HMRC (which it sounds like it is) then they will issue your client with a cheque, reimbursing them for the cost of your invoice.
It takes time for HMRC to action (as everthing does!) but it works and well worth the effort.