Refunds of PAYE from past tax years | AccountingWEB

Refunds of PAYE from past tax years

Client is usually a bit forgetful and over the years underpays/overpays PAYE until at the end of the year he's overpaid. Overpayments got lost in the mist of time as brought forward figures were impossible to reconcile and I don't do the payroll and the payroll people themselves don't keep an eye on him, unsurprisingly.

I finally realised he was not being refunded around £800 this year and because I'm not the payroll agent I told him to ring HMRC. They have written to him agreeing that have several years worth of overpayments from him but want a full explanation as to how the overpayments arose. They seem to doubt that the P35's concerned are correct. Of course they are correct. I drafted a reply for him stating that as a busy business person things got overlooked and when he caught up, he double paid. His letter is apparently not detailed enough and they now require him to explain for each month that was overpaid in 2006/7 and last year exactly what happened.

This could take hours and hours of his time and mine and I am keen to avoid it. It seems a glorious excuse for HMRC to hang on to the money. Should he complain to the next level up or will he get absolutely nowhere?

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His fault

petersaxton |
petersaxton's picture

Can't see they have a leg to stand on

chatman |

I had this a while ago

taxhound |
taxhound's picture

Thanks for the comments

Moonbeam |
Moonbeam's picture

Their own fault

petersaxton |
petersaxton's picture