I have a client for whom I manage a small payroll. Each month they pay their PAYE liability online, on time. I don't believe they have ever missed a due date. However their online banking software doesn't permit the entry of a new reference for an already established payee. The choice is to either establish a whole new payment instruction for each monthly payment (and delete old ones to save clutter in the payee list) or use a generic reference for the established payment instruction. They do the latter i.e. use reference xxxPKxxxxxxxx0000 instead of the period reference in the last 4 digits.
For the last few months we have had a phone call from HMRC Collections stating that my client has not made their payment. I have to check payment details with the client and call back to tell them when the payment was made, they then seem happy.
We even had a letter last year saying that no payments had been made for the entire year and threatening legal action yet when I phoned them they readily stated that there was a £15k overpaid balance on the previous year account made up of a number of payments from the current year ! In the words of Homer Simpson DOH
Am I expecting too much of them to allocate a payment made on 18 October with a 0000 reference to be allocated to month 6 where no previous unpaid months remain ?
Does anyone else have this problem and has successfully resolved it ?
I am reluctant to tell my client they must set up a new payment each time.