Long story short, a client has come to us very last minute with accounts and tax due for filing next week, and he has lost his HMRC paperwork with the UTR on it. He has requested a reminder from HMRC but that will take up to two weeks to come in the post and payment is due next week.
He has the funds to pay right away, but without the UTR or payment reference how will HMRC know to allocate this payment to his account?
Is there another reference he could use on the payment and then call HMRC for them to find it and allocate it behind the scenes? Or will he just have to face the late payment penalty?
Anyone had this before? Many thanks for any input.
Replies (21)
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Why are you worried?
If it's only a couple of weeks after the payment due date there will be a comparatively tiny amount of interest and no penalty.
You're taking the words a little too literally. It is possible, but unlikely, that the accounts will be due for filing on the same day as the CT600. It is even more unlikely that the CT600 would be due for filing on the same day as the CT payment deadline.
The OP says that tax is due for filing next week. You said that you are just reading what was written so I was wondering if you knew how one files tax.
Or did you interpret “tax” as meaning “tax return”? (In which case you weren’t just reading what was written)
Yes I inserted the word "return" after the word "tax" in the OP's post. PM me your number and I will call to discuss. you are boring me now - this conversation is over.
So you weren’t just reading what was written? With the result that you confused yourself into thinking that the company is due to file its tax return on the same day that payment of tax is due. Possible I suppose but I confess to be struggling to think of a scenario where that would be the case. I therefore suspect that my interpretation of the OP’s words is far more likely to be correct than yours, especially since he does go on to refer specifically to payment of tax.
Make payment by cheque quoting Company reference number. Once UTR received and payment has cleared bank, telephone the Collector armed with cheque number, account number, sort code and date it cleared the bank statement. They have a magic tracing programme so can look up cheque and transfer it to UTR you are giving them - just make sure to ask them to give the reallocation an effective payment date the cheque was received as opposed to the date of reallocation
There is only late payment interest and no penalty as mentioned so what is the amount involved?
I would wait for the reference and then for agent authorisation so you can see the long payment reference and use it to pay.
Or get him to have another look - he would have received the reference when the company was set up and a notice to file after the end of the first accounting period.
The letter may not take long to arrive assuming the company does not use a registered office service.
You could try paying the tax into his personal UTR.
Then reallocate.
If only to show lateral thinking to the client.
Yet he may not appreciate your problem solving skills when you come to invoice him...
'while the tears of gratitude are still moist in his eyes'
Unless he pays upfront .
Advising to deliberately pay against the wrong reference is very unprofessional - it is likely to cost more in fees to unravel than the measly amount of interest charged.
Exactly, you would save interest but incur time - can the OP bill this?
A client paid her income tax to an inheritance tax HMRC bank account and it took me all morning to sort out so would not recommend.
I got some personal tax clients to pay their IT bill quoting their NINO in January - it was automatically put to their IT account with no interaction from me.
OP - it’s been mentioned before ... use the CRN as the payment reference. Or take the hit on the interest, which will reduce your time and also be an incentive for them in the future; depends if you like them or not.
ALISK - the OP has not been back at all so we don't know the amount involved.
For some reason they thought there were penalties so now they know there is only interest maybe they will just wait for the reference.