Delay in PAYE refund

Delay in PAYE refund

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Hi

I have  client who has 2 employees.  One of them was on maternity leave for the majority of 2014/15 and my client paid her SMP. The net result for the year is that my client is owed £5,100.

I called in early April to request the refund.(Normal payment to HMRC is approx. £100 a month so she wanted it back rather than offsetting payments)

I was given a date of 26 May that the cheque would be received by. 

I called last week as no cheque has been received, only to be told I had been given a date relating to CIS, not PAYE and that the actual date by which she should receive a cheque is 2 September!!!!!

Seriously - how can it take so long to hit a button an release a cheque? It is showing up online as the correct amount overpaid so there is no query re the amount.

Client has 2nd POA due at end of July and would have liked the refund back to pay that but that's looking unlikely.

Has anyone else came across this and can anyone suggest how I can get this back any sooner?

I have been told a letter of complaint wont make any difference as they are all in a queue and will be dealt with in that order.

Thanks in advance

Replies (5)

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By anon2000
08th Jun 2015 17:41

Anyone? Thanks

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By DMGbus
08th Jun 2015 22:04

Next time - apply for funding

In the few cases that I have recently dealt with where SMP recovery exceeded liabilities I have applied for in year funding and got a cheque to the client before the year end, thus avoiding the "stick-in-the-mud" HMRC obstinance dealing with after year end repayment claims.

Some might speculate that there might be an unwritten rule at HMRC that PAYE scheme overpayments must be challenged, delayed, challenged and delayed.

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Replying to lionofludesch:
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By Sirius
09th Jun 2015 07:49

My approach every time

I've had a similar problem in the past so my approach now is always to apply for funding.

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Chris M
By mr. mischief
09th Jun 2015 05:32

Slow pay is standard

Slow pay is the norm from HMRC not the exception.  CIS is no gimmie, one client is still awaiting a £5k CIS refund - CIS is an area where HMRC have improved, but only after a great deal of pressure from the industry and accountants.

Personally I do NOT accept it is mere incompetence, I believe deliberate and cynical slow pay is management policy albeit you of course will not find this in any written policy manual.

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Euan's picture
By Euan MacLennan
09th Jun 2015 10:06

Hindsight

I agree with the above.  If you have a similar situation in future:

apply for funding, orfailing that, don't call, but write to HMRC, NIC & EO, BX9 1BX, as soon as you have submitted the final EPS for the tax year, giving the reason for the "overpayment" of PAYE as the SMP recovery.

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