PAYE Refunds

PAYE Refunds

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I had a very small rash of replies from the Revenue recently to requests for overpayment refunds on PAYE schemes for 11-12 and even in one case for 10-11.

They are replying saying they "cannot justify an overpayment" (and presumably will not refund) if any of the following reasons apply.

Duplicate payments with no evidence why

Payments made in error with no explanation

Overpayment due to monthly payments which do not match our records

Any other explanation without supporting evidence.

I have had four of these so far, 3 due to a very late tax code notice issued by the Revenue in Mar 2012 which generated a tax refund not reclaimable from the month end PAYE. They repaid two, and the third has had protracted correspondence, the latest saying "the individual had a tax refund, and therefore this is not payable"

And then another this morning relating to 10-11 which I have not yet investigated the reasons for.

Have they any legislative backup to these claims I am not aware of any.?

And of course on the one they are disputing, how can they possibly claim that it relates to an employee self assessment repayment?

Anyone else had these? Is this yet another tactic to keep legitimate repayment claims from happening?

Thanks for your input

Replies (3)

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By Ron Banerjee
20th Feb 2013 12:37

Same here

We have experienced the same. We have provided evidence and reasons why but still struggled to get the refunds. Ensure you put a valid reason 'overpaid to avoid underpayment' or some such seems to work. 

Then again the other day we simply phoned and asked for the refund for 2011-12 and it was sent out to the client within 10 working days. Another case of the left hand not knowing what the right hand is doing at HMRC. 

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By MINSTERBUSINESS
20th Feb 2013 16:39

paye refunds

What you have to remember is that since tax man was virtually taken over by the vat man things have changed, you can no longer talk to anyone without feeling your in the wrong or make a mistake without some pratt sending you a fine. I was getting on quite well with a paye inspection inspector and we were chatting by email when I was suddenly told that hmrc didn't like clients talking on email and to write to him via an office he didn't work at as that was the system. Like you have two letters regarding overpayment going back to 09 which more or less says we have your money and you have no chance of getting it back, not all thieves are in jail or a law unto themselves

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By DCaine
01st Mar 2013 10:14

And same here...

I have inherited a similar case that has been going on for over a year now.  The latest letter from HMRC agreed that there was an overpayment for 2009/10 but we have to provide evidence and a justified reason as to why the overpayment arose !?

I have tried to find where this 'justified reason' phrase has come from, so that I can try and meet the requirement and get the client's money back for them but no luck so far.  I wonder if HMRC think people will just give up and they get to keep the cash or whether its some new anti-fraud measure.  When I reply to their latest letter I will ask them what legislation or procedural manual they are quoting 

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