HMRC can't find payment.Anyway to trace

Client has paid tax but not showing on account

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We have a client who has Parkinson's. He had a tax bill from sale of land and he says he paid it to the correct account number and sort code.

 

We have printout which confirm that but not showing the reference.This was paid back in March.

Is there anyway HMRC could trace this without knowing the reference he used?

Replies (9)

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By Claire Haverson
17th Apr 2024 10:46

I have had this happen several times. If you call them, they will ask for details of the account it was made from, date and time of transaction etc. and they will trace it. Be warned it is likely to take them several weeks, but I haven't one they haven't found eventually!

Thanks (4)
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By kiwilondon99
17th Apr 2024 11:21

A business payment- made in time - was located/identified whilst on the phone with HMRC [ but the paperwork to & effort of getting it moved& resolved within HMRC took weeks ! ] it was a sizeable sum + the interest/penalty regime was kicking in - & difficult to stop that once in motion. All interest was eventually cleared...

As noted you need all the details + make notes of call
best of..

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Jane
By Jane Evans
17th Apr 2024 11:28

Write to the Collector of Taxes at HMRC BX5 5BD with all the details, including the bank account details that the payment was paid from and what you want to happen. The money is probably in a suspense account and they will try to resolve it. I have achieved this within a few days.

It can help if you ask the client to sign the letter as well as the agent.

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DougScott
By Dougscott
17th Apr 2024 12:10

Seems like HMRC can't even post their receipts correctly. I sent a bank transfer clearly showing the CT61 reference (which appeared on my bank statement) which they then misallocated to my Corporation Tax account. The first I knew about it was when I received a cheque from HMRC refunding the "overpaid corporation tax". I rang and first they denied that they could possibly misallocate a referenced payment and then they claimed they weren't able to cancel their own cheque and reallocate to the right place. So I wrote them a snotty letter, sending the cheque back and telling them to sort it out, otherwise I would seek compensation from them and please could they acknowledge receipt of the letter. Never heard anything again, not even an acknowledgement but no one has chased me for CT61 tax, so I assume they must have done the "impossible" and reallocated the payment correctly.

As an aside they don't seem to chase for late paid CT61 tax or charge interest or penalties - is that possible?

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Replying to Dougscott:
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By FactChecker
17th Apr 2024 13:39

If "they don't seem to chase for late paid CT61 tax or charge interest or penalties" (on which topic I've no idea) ... why are you comforted that "no one has chased me for CT61 tax"?

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Replying to FactChecker:
DougScott
By Dougscott
17th Apr 2024 15:02

Because on other occasions CT61 has been paid two months late with no chasing from HMRC and no interest or penalties levies. Perhaps you can tell me FactChecker why not?

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Replying to Dougscott:
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By FactChecker
17th Apr 2024 16:01

"Because on other occasions CT61 has been paid two months late with no chasing from HMRC and no interest or penalties levies. Perhaps you can tell me FactChecker why not?"

Of course I can't tell you why you've 'been lucky' - but it's not because interest and penalties can't be levied by HMRC.
"The CT61 form must be completed accurately and submitted on time to avoid penalties and interest charges. If a company fails to submit the form or pay the tax on time, it may be liable to penalties and interest charges. The penalties for late submission and payment are:
* £100 for the first late submission
* £200 for the second late submission
* £300 or 5% of the tax due, whichever is greater, for the third and subsequent late submissions.
Interest will also be charged on any tax that is paid late."

However that wasn't my point (which BTW wasn't meant to be argumentative).
I was simply curious as to why you were comforted that "no one has chased me for CT61 tax" (re your assumption that they must have done the "impossible" and reallocated the payment correctly) IF you believed that they don't anyway seem to chase for late paid CT61 tax or charge interest or penalties?
I perceived an apparent logical inconsistency and wondered if I'd misunderstood?

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Replying to FactChecker:
DougScott
By Dougscott
17th Apr 2024 17:00

My hypothesis was a question which you have now answered in detail thanks - I guess because CT61s are STILL manual (why?) then there are no automatic computer generated penalties or interest. HMRC incompetence has some benefits sometimes...

And I wasn't worried because no one was chasing me and HMRC had the money - somewhere. And I had my original receipt for the payment and a copy of their cheque with cancelled written across it.

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By K81
17th Apr 2024 13:40

often contacting debt recovery with the payment details gets the payment traced & onto the clients record quicker.

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