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Getting HMRC to hold onto payments

Getting HMRC to hold onto payments

A few clients have called me to ask if they can make a pre-emptive payment to HMRC for their balancing payment as they would rather have the money out of their accounts as soon as possible (we are talking 'big hitters' here, well, by my standards at least :) ).

I don't have much experience with making payments to HMRC that they aren't expecting, but in the few cases I have seen HMRC seem inclined to send the payment back thinking it is an overpayment (when in fact the actual liability will arise a while later).

So does anyone have a suggestion as to how to ensure HMRC keep any payments made until the liabilty arises? As an example, Mr X is likely to owe a balancing payment of £20,000 in January 2009. He is still getting his info together and we expect to file his return in January 2009. He wants to make a payment of £20,000 now and obviously make up the rest if need be later. But I am wary that HMRC will send the cheque back at the worst possible time and we will then be in a situation where we think it is paid but HMRC are doing their long process of sending it back, then a penalty.
Thomas Peterson


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18th Oct 2008 21:26

Tax Deposit Certificate
Yes David you can still acquire these see the link

Deposits under £100,000
The first Deposit you make must be for a minimum sum of £500. Any further Deposit must be either:

for at least £250
enough to bring the amount you hold on Deposit up to at least the £500 minimum, if the amount you hold has dropped below that sum
Deposits of less than £100,000 may be made by cheque.

Please make your cheque payable to ‘HM Revenue and Customs only’ and send it to:

HMRC DMB Banking Shipley
Victoria Street
BD98 8AA

Please send a covering letter with your cheque, giving the following information:

the name and address of the Depositor
the date and amount of the payment
the full names of all Executors or Trustees, if the CTD has been purchased in the name of an Estate or a Trust
Again, you must not pay them in directly to the Bank of England.

The Certificate date will be the date of receipt of the cheque by HMRC.

regards and hope this helps
[email protected]

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By ugdiv
15th Oct 2008 13:19

Certificates Of Tax Deposit (link to HMRC site)
Certificates Of Tax Deposit Prospectus (Series 7) can be found here


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15th Oct 2008 12:53

Tax certificate
I'm not sure if you can still do it but you used to be able to buy a tax certificate (not sure it that's the right name) which would then entitle you to get interest from HMRC on the amount paid until the date you want the tax liability cleared and at that point the certificate gets cashed in.

I'm sure someone else will know better if it is still in existence and if so if it is worthwhile or too much bother!!

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By Anonymous
15th Oct 2008 12:22

31st January is a deadline
You are entitled to pay them anytime before that, the fact the liability has been completely calculated is not relevant.

You may want to check the 07 Tax Return did not have the Q19 repay box ticked in respect of overpayments.

If it did, you are in time to request that Q19 be changed to remove the tick.

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