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Help! How should my client minimise interest

HMRC error puts my client in a difficult position

In October 2017 HMRC systems allocated a new name,  new address and new NI number to my clients UTR. I am oddly, and luckily to some extent, still an agent. We complained in writing once we knew (November)  and my letter is on the file with no action. HMRC then sent this new person a demand for £5000 tax in January. They sent it back as they don't even complete a tax return and HMRC seemed to finally listen and rang me to find out more details about my client. However, despite being in agreement, they still have not reverted my clients account back to her.

She does owe £5000 on 31st January  but I'm reluctant to ask her to pay as the UTR is currently in completely the wrong persons name and address. 

I cannot advise her to buy a certificate of tax deposit as they were stopped in November 2017.

So, what's the "advice" out there? What would you do? HMRC have asked me not to change name and address on the account as it was the NI number that caused their system to do this and I can't change a NI number.

Currently I've had it noted that no payment will be made until they reverse their error and I expect interest and any future penalties to be quashed. I ought to charge them for my time!




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13th Jan 2018 21:02

Make the payment using the NI no?

At least you client can prove that the liability was paid on time, to quash interest & fees when they are raised. Allocating it from HMRC’s suspense account to your clients account can be sorted at HMRC’s usual speed.

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