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HMRC Demand for Repayment of Refund

Client being asked to repay refund paid in error after he had phoned HMRC to confirm it was correct.

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A client submitted a paper Self Assessment return which was processed incorrectly by HMRC, generating a refund. He phoned them up to confirm that this was correct and was assured that it was. He then used the funds to clear his mortgage.

Now HMRC are demanding it is paid back with backdated interest. I've looked at the HMRC guidance for this situation and it seems to fit the 3 criteria but can anyone quote any Case Law for this situation?

Replies (4)

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By thomas34
13th Aug 2018 12:41

How much are we talking about?

The fact that he phoned HMRC suggests that he thought it was wrong.

Lots more information required to give an answer.

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By ajkidd
13th Aug 2018 13:40

He thought it was wrong but it was confirmed by HMRC over the phone so as a layman he accepted their opinion. The amount is circa £5K.

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By K81
13th Aug 2018 16:13

Did he tell HMRC why he thought it may be wrong - the person who answered his phone call would only be able to see whether there was a credit or debit on his record & would have confirmed that there was a credit therefore repayment correct.
I think he'll have to pay it back.

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By SXGuy
13th Aug 2018 19:32

In a similar situation myself. Submitted an amended tax return and 3 months later hmrc issued a refund based on original ignoring amendment.

Told client it was wrong, he kept it, now they want it back.

However the information they say is missing and their own calculation differ so for me I felt the need to send a letter off giving them hell.

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