A VAT repayment has been sent to the wrong bank account. It's not HMRC's fault as there was one digit wrong in the account number provided.
We have spoken with HMRC and they say we have to advise them in writing, they will then write to the bank and then the bank will look into it.
The client has spoken to the bank (Santander) and as it's not gone to the client's bank account and the client didn't make the payment, there is nothing they can (or will) do!
So everyone's really helpful!
The letter went off to HMRC on Friday. Has anyone any recommendations for fast tracking this and getting some immediate action please?
It would be some comfort at least, if we could tell if there was a bank account with that number or whether it will be in a Santander holding account. Is there any way of finding this out?
Thanks.
Replies (10)
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You need the bank's help not HMRCs.
Your client seems to have had a spectacularly unhelpful response from the bank so far, but perhaps that is because he spoke to a monkey not an organ grinder. Or perhaps your client asked the wrong question.
If the error was, as you say it was, in the account number then if the account exists it will belong to another customer of the same bank at the same branch, and it will take the bank 5 seconds to identify the customer to set the ball rolling.
Only if vaguely interested
it will take the bank 5 seconds to identify the customer to set the ball rolling.
If the media are to be believed, Santander's reputation in this kind of situation is not great.
Account Number
If there is no account with the number which the repayment has been made to then the amount will be returned to HMRC.
Agree
If there is no account with the number which the repayment has been made to then the amount will be returned to HMRC.
I am sure that's right. And the organisation best placed to know whether that has occurred will of course be the bank.
check if it's a valid account number
I'd suggest first checking if the account number provided is actually valid. There are various online tools to do this. (for example. http://www.postcodeanywhere.co.uk/demos/bank-validator/ )
If it is, in fact a valid account number, you'd need to deal with the bank to sort out. If not, the repayment would have been sent back to HMRC, so once their system has processed the bounce, they should be able to make the payment again.
Santander themselves (http://www.santander.co.uk/uk/help-support/faqs?p_p_id=W017_Informations...) recommend speaking to the payee bank to resolve, so don't let them fob you off.
There is a voluntary code (which Santander have subscribed to - see http://www.payyourway.org.uk/special-focus/misdirected-payments/ ) which means the bank will help get the funds back, but HMRC as payer may need to pursue, since you didn't make the payment.
Surely if it's only a digit in the account no that's wrong the sort code will still be the same Santander branch. Santander should/could therefore identify it quickly. However if the money has been paid to someone's else apart from the OP it made need the account holder's permission to return the money. Write to the Chairman's office at Santander and state that you will be reporting it to the national press if it isn't sorted
Returned? ... maybe not
Banks have a habit of putting any misplaced receipts into a suspense account pending someone chasing the payment. Bit like HMRC actually!
Chase bank hard to see if they have done this. However as it is not you who made the payment but HMRC it may be down to them to chase for the repayment. Nightmare
only one digit
I had a similar problem in 2013 when a self assessment refund was paid into the wrong account - the last two digits were transposed.
If the money has been transferred into a 'live' account then you will have to rely on the honesty of the account holder.
The Nat West were very unhelpful at first as they said that they had carried out the transfer as per the instructions given to them. They refused to let me have any information about the account holder but agreed to contact him and explain the situation.
The person returned the very large refund to my client the same day!
I understand that the banks signed up to a code of practice in 2014 to be more helpful but at the end of the day you will have to rely on the honesty of the account holder or take legal action.
Given a few similar instances where the recipient account holder has refused to return the cash, some banks have amended their account Ts and Cs to state that, in the event of an erroneous credit, the recipient is not entitled to retain the cash. Worth getting hold of Santander Ts and Cs to check if they have done that. If they have, make it clear in the discussions with Santander that you know their Ts and Cs cover the situation.
Procedure for dealing with payment to wrong account
If the client instigated the error their end then the preferable method is for the client to raise the matter with their own bank. They will invoke a standard procedure of identifying the recipient branch and writing to them. The recipient branch will then contact the customer. This method deals with the associated data protection and ID verification protocols that arise should the sender try make contact with the recipient's bank direct. As this is a primarily a manual activity the sender can expect to pay a fee