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HMRC Reimbursing Fees

What will they ask for?

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In a saga going back more than two years, with failure after failure on HMRC's part, I have finally recently resolved an issue for debt collectors chasing completely bogus debts from a client.

With the grovelling apology, HMRC indicated that they would reimburse our client his fees once a paid invoice is in place.

The client has, today, paid us, and so time to follow up. To smooth things as much as possible, does anyone have any idea what HMRC will ask for?

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By cbp99
11th Jun 2018 15:48

We have just sent a receipted copy of our invoice to the client and HMRC have paid.

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By northernmonkey
11th Jun 2018 17:02

As above, however, on a recent claim, they asked for a copy of client bank statement as additional proof! We simply sent a redacted statement from our own account clearly detailing the receipt.

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By possep
11th Jun 2018 17:14

A paid invoice usually works.

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By SteLacca
12th Jun 2018 09:21

Thank you. Copy of invoice it is.

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By claudialowe
12th Jun 2018 10:47

I agree with the others, a copy of the paid invoice. I have also put the date that it has been paid either on the invoice or in the accompanying letter.

If the client is VAT registered, they will refund the money less the amount of VAT.

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Replying to fawltybasil2575:
By SteLacca
12th Jun 2018 12:33

Thanks, Basil,

The (VAT exclusive) amount is £900. I've provided a breakdown of the work (including time reassuring the client and maintaining the relationship that HMRC failures were jeopardising) in the covering letter.

Client will be able to recover VAT, and so no problem there.

I've done my best to pre-empt HMRC, but you can't really legislate for their procedures and requirements, which exhibit very little consistency across the board.

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Replying to fawltybasil2575:
By SteLacca
12th Jun 2018 15:19

I wasn't really referring to keeping the client informed, but rather repairing the damage that HMRC were doing to the relationship.

A subtle, but important distinction I believe.

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By fawltybasil2575
12th Jun 2018 16:41

(1) Regrettably, there is no distinction, from the HMRC's interpretation of their own redress policy, between (i) keeping a client informed generally and (ii) keeping the client informed of HMRC maladministration. It is, as I said in my last post, the HMRC's incorrect interpretation of their own policy which is the stumbling block. Hence the subtlety or otherwise of the distinction between (i) and (ii) is not in point. The HMRC stance is that "our redress policy means what we say it means".

(2) May I return to your original question, which gives me more encouragement that you will obtain full recovery. Looking at it more closely, your second and third paragraphs are, taken at face value, self-contradictory IF the point in the second paragraph is intended to FULLY explain what HMRC have asked for.

Implicit in that second paragraph is that HMRC have already advised you that they ONLY require a copy of the invoice, and confirmation of its having been paid. This is inconsistent with your third paragraph which asks what further information they will require. Hence the way to play this (if indeed your second paragraph is correct) is to quote back to them their letter, i.e. :-

'In your letter of xx/xx/xxxx you assured me that you would fully reimburse the fees upon my providing you with a copy of the invoice and confirmation of its having been paid. I accordingly enclose a copy of that invoice and confirm its having been paid; and I thus look forward to your honouring that assurance by confirming to me (within the next 21 days please) that you have sent a cheque to my client in full reimbursement'.

There is thus, on reconsideration of your initial question, no need for you to send any OTHER information to HMRC.

Basil.

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By claudialowe
12th Jun 2018 16:42

I really understand why you want to say what you do, however I would keep it factual. Looking at the last invoice I did, I stated attending x on y, preparing schedules, meeting with client, telephone conversations with HMRC on x, y and z with the final sentence of "...to agree no monies due from yourselves to HMRC".

I then went on to say Fee: In excess of x hours at £y per hour.

They paid up like a lamb and also sent my client's wife a cheque for £75 for her distress "as a gesture of goodwill".

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