HMRC refund

Received refund for a client and doesnt know what it is for

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I have recieved refund from HMRC in the client account, only £150, however its been over a month and I have not recieved any notification from HMRC as to what it was for. Tried ringing HMRC and the agent keep on asking client's UTR. I explained to the agent that if I knew what it was for then I wouldn't be making this call, however she said she cannot check unless I give client's UTR..... which I found bizzar surley they can check via the bank details which I am prepared to give but she wasnt interetsed. 

It is for a corporation tax. We use our bank details on all CT600 and SA100s and it is not practically possible to look for each client record to see if a refund is issued.

 

Anyone come across this sitution before, any other alternate way to find out whos it was for?

 

Replies (27)

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Danny Kent
By Viciuno
24th Jun 2024 12:21

Can you see which tax it is by looking at your bank details?

I've just checked a few CT ones and they are from "HMRC Co Tax" followed by UTR.

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By [email protected]
24th Jun 2024 13:22

It is Corporation tax. HSBC doesn't show reference , although someone else mentioned that same that they can see name or utr reference.

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By ireallyshouldknowthisbut
24th Jun 2024 13:25

What purpose does it have for you to receive these in the first place?

Seems like "busy work" to me.

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Replying to ireallyshouldknowthisbut:
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By [email protected]
24th Jun 2024 13:43

Standard practice I always have for last 20 years.

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Replying to [email protected]:
By ireallyshouldknowthisbut
24th Jun 2024 14:10

I hope you are not in audit.

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Replying to [email protected]:
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By bendybod
26th Jun 2024 09:53

I used to request refunds to our Client Deposit Account. These days, unless the client specifically asks us to do so and take our fee from the refund, it comes under the category of too much like hard work. We still have a checklist of clients to whom we expect HMRC to send refunds and if we don't get an agent copy of a refund notice within a reasonable amount of time, we check with the client that they haven't received it and then chase.

I used to do it so that I ensured that I get paid. Now I ensure that I get paid by either no pay, no file or, if they're serial offenders, no pay, no work.

I have as little as possible go through the Client Deposit Account and, to be honest, most of what does goes straight back out again.

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By Truthsayer
24th Jun 2024 13:28

How many companies do you act for? Will it really take that long to look through your files or through HMRC CT online and see who it relates to?

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Replying to Truthsayer:
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By [email protected]
24th Jun 2024 13:44

About 250-300. Not worth it.

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Replying to [email protected]:
Danny Kent
By Viciuno
24th Jun 2024 13:49

I don't think there is a concept of materiality when it comes to client accounts.

Do you have a junior you can pass this onto to have a look through. Do you have a list of companies you are expecting refunds for and start off with them?

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Replying to Viciuno:
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By FactChecker
24th Jun 2024 13:53

"I don't think there is a concept of materiality when it comes to client accounts"

Quite .. it sort of goes with the territory - as in 'have client accounts = *must* manage client accounts'. Failing to do so (if someone notices and complains) can have a very material impact on the health of the business.

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Replying to FactChecker:
By ireallyshouldknowthisbut
24th Jun 2024 14:13

FactChecker wrote:

"I don't think there is a concept of materiality when it comes to client accounts"

Quite .. it sort of goes with the territory - as in 'have client accounts = *must* manage client accounts'. Failing to do so (if someone notices and complains) can have a very material impact on the health of the business.

This is why I dont understand client accounts in 2024. I fail to see what the point is unless you are ambulance chasing stuff and getting paid out of the rebate.

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Replying to Viciuno:
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By Open all hours
24th Jun 2024 15:10

‘What do you do when the client account doesn’t balance?’ Was a real question asked by the junior partner of his senior many years ago. That sort of confirmed to me that it was time to leave the firm of Chartered Accountants.

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Replying to [email protected]:
By ireallyshouldknowthisbut
24th Jun 2024 14:16

asimmalik-AT-hotmail.com wrote:

About 250-300. Not worth it.

You should be able to narrow the field somewhat surely from the date of receipt which should more or less tell you the year end.

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Replying to [email protected]:
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By Paul Crowley
24th Jun 2024 18:22

Client accounts need to be reconciled at least every 5 weeks, if you are with the mainstream organisations.

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paddle steamer
By DJKL
24th Jun 2024 13:55

Whilst it may not display HMRC reference on your statement screen with your bank, if you ask them they may hold more detail.

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Replying to DJKL:
Ivor Windybottom
By Ivor Windybottom
24th Jun 2024 14:39

Banks can also trace some more detail.
We had a payment to HMRC that they could not trace and we ending up getting bank info, right down to the level of the time of transaction, etc. that eventually allowed HMRC to find it. It may contain more info for your client or it may provide enough for HMRC to trace who it relates to.

Plan B: When the next accounts, etc. are done for each company you could look out for the £150 on the client account. That way you would find it eventually without too much effort or cost.

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Replying to DJKL:
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By Sheepy306
24th Jun 2024 17:30

That's correct. If you ask the bank for 'remitter details' on that transaction then they should be able to give you the full narrative that HMRC would have provided, some banks unhelpfully suppress this information on bank statements/online.

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By Barbara G
24th Jun 2024 19:01

I agree with the above. If you phone the bank they could possibly give you more information. That's what we have to do quite often. The narrative on the online statements are brief, but the bank has more info in the background.

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By 0098087
25th Jun 2024 09:25

last thing i want is clients monies. Yuck

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By Roland195
25th Jun 2024 10:32

Also confused as to why anyone would want to operate a client account. The time spent on a Monitoring Review would be halved without one.

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Replying to Roland195:
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By Sheepy306
26th Jun 2024 15:17

CIS and other refund clients - it's often the only way to get paid before the client spends the refund on themselves!

If an accountant can't do their own client account reconciliation then they probably shouldn't be an accountant but yes monitoring visits would be a little quicker, but they'd also be quicker if a small sole-practitioner didn't have to have the excessive policies and procedures in place too!

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By [email protected]
25th Jun 2024 12:14

Its sorted. Turnout HMRC do add reference , however HSBC withheld. They were able to check the from their end.

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Replying to [email protected]:
DougScott
By Dougscott
25th Jun 2024 22:04

I wouldn't recommend HSBC or HMRC to anyone. Unfortunately we have no choice when it comes to HMRC.

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Replying to [email protected]:
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By Sheepy306
26th Jun 2024 15:19

Natwest also withhold the full details. Metro Bank on the other hand provide them as standard. Quite how any accountant, solicitor, insolvency practitioner or estate agent can operate a client account without this information as standard beggars belief.

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By sheila t
26th Jun 2024 09:16

Reminds me of when I worked for a car leasing company with about 30k client vehicles and the bank statement showed 'salary' as the detail!! Nightmare trying to work out which client had paid us

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By Barbara G
28th Jun 2024 14:34

Bank of Ireland withhold details too. But I suppose that's of little interest to the majority. We're just a wee island off to the west.

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Replying to Barbara G:
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By FactChecker
28th Jun 2024 18:12

"We're just a wee island off to the west."

Isn't that what Bermuda and others have claimed ... and why we now have all this AML rigmarole? :=)

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