I have just learned of HMRC's latest device for not making timely repayments to taxpayers, which was explained to me by the agent's helpline as "uncleared credit" which the advisor cheerfully advised me is not a new policy....
The situation is that the client made an estimated payment before the tax return was finalised, payment was made on 30th January. I applied online for a refund of the overpaid amount on 9th February but the HMRC advisor has today told me that the time period for uncleared credit runs from 5th February until 5th March so that is why it wasn't issued and that he would put a further request in - which will take another 5 working days from today!
It seems to me that HMRC rarely use 'security checks' as an excuse for delaying tax refunds these days and I am guessing that this has been replaced by 'uncleared credit', which I guess means that few SA repayments will be made for the two six week periods running from 1st August to mid-September and 1st February to mid-March. And yes my client paid via online banking, not by cheque....
With hindsight I should have advised my anxious client to delay payment until I had finished the tax returns and paid an accurate amount a day or two late. I will not be caught again!
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yes
Yes I had something similar.
Client mistakenly made a PAYE payment to his SA reference and the Revenue said they couldn't issue the tax refund until 30 days had lapsed (it was around £7k due to other reasons not the PAYE payment, which was about £100).
He then dropped off my Government Gateway client list and when I rang they said they had issued him with a new UTR number and we had to wait for authorisation before they would speak to me ! That was a fun time.....
It actually took them 3 months to issue the refund in the end.
Watch out for budget accounts
HMRC won't issue a tax refund until the most recent payment has had 30 days to clear. 30 DAYS. Ridiculous. I've got a client who has a budget account arrangement paying HMRC weekly. They want to keep the payments to build up to the July payment but want a refund of what was overpaid in January. But HMRC can't do it whilst my client continues to make weekly payments. I've only asked for payments more than 30 days old to be repaid. But HMRC can't do this either. We can leave the credit balance and reduce future payments, but the client hasn't got the ability/inclination to change their standing order. So the only solution is to cancel the standing order, wait 30 days, then apply for refund, then restart the standing order.