PAYE online payment ref problem | AccountingWEB

PAYE online payment ref problem

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.

There are 13 comments. Login or register to view them.

Direct Debit

Euan MacLennan |
Euan MacLennan's picture

Or use Billpay ansd a card on the company account

Chris Smail |
Chris Smail's picture

Bacs Payment

bunniboiler |
bunniboiler's picture


gerrysims |
gerrysims's picture


taxhound |
taxhound's picture


landscaper |
landscaper's picture

Drop the zeros...

David Richards |

Pay early? WHY??

Healthpay |

Sounds like HSBC...

fluffymitten |
fluffymitten's picture

DDs for clients

Euan MacLennan |
Euan MacLennan's picture

Same here

tltodman |

Online banks should get with it

mikewhit |

Not all banks....

Healthpay |