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HMRC Refusing to refund PAYE overpayment

HMRC Refusing to refund PAYE overpayment

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Any advice on how to deal with HMRC refusing to repay an overpayment.

The won't refund the overpayment unless there is a "satisfactory answer"  and they won't accept that the person paying just paid the wrong amount!

What on earth can one do about this?


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22nd Jan 2014 13:12

Bring theft proceedings?

Only half joking. HMRC are holding on to money that is demonstrably your client's with an apparent intent to permanently deprive them of it. Sounds like a classic case of theft to me.

Are you expecting to pay PAYE in the future? If so, I would simply offset this amount. If HMRC seek to pursue any perceived underpayment as a result, simply point them to the non-refunded overpayment. They'd come off as pretty stupid taking you to court in these circumstances.

Make a complaint to both HMRC and your MP. This is a ridiculous recurring situation and should not be allowed to continue.

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22nd Jan 2014 13:14

Get the client to sue them. 

Get the client to sue them.  Or rather threaten that that will be the next step.  Tell them it is for the Court to decide whether your client is telling truth.

Thanks (1)
22nd Jan 2014 13:35

small claims court

When I had this I prepared a small claims court claim form and printed it - you can do this on the internet without lodging it. i did not file the claim but sent a copy to HMRC saying pay up within 7 days or else ............  They paid up within 7 days! All letters, phone calls etc over 18 months hadn't worked.

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