Identity Checks HMRC

Though originally clear HMRC now demanding further id proof

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Hi

I've received conflicting discussions with HMRC on agent dedicated line.Initially advised all clear for repayment of client's SA 20/21 and given a repayment deadline but subsequently learn HMRC have blocked this.Worryingly they have removed refund showing on SA account "by adjustment" and demanded further proof of id and completion of repayment questionnaire.

Has anyone else suffered the same response and is this legal?

Many thanks!

Replies (14)

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By I'msorryIhaven'taclue
07th Jun 2021 11:02

Was the refund to go directly to your client's bank account, or to your client bank account?

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Replying to I'msorryIhaven'taclue:
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By Lass
07th Jun 2021 12:31

Thanks
The client's personal details have not changed from all previous returns including bank for any repayment which is the client's own.

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By Duggimon
07th Jun 2021 11:10

There was another thread about it a week or so ago. The requirements for identity checks seem rather invasive to me, but I suppose it's better than having them be so easy to claim that there was rampant fraudulent claims made under innocent individuals' accounts, as has been the case in the recent past.

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Replying to Duggimon:
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By Lass
07th Jun 2021 12:37

Thanks
I did try and find anything previously posted.
I do understand that checks are required but am concerned that HMRC changed it's mind after informing me that all security checks were complete and repayment on it's way and now removing the overpayment from my client's details on my agent's account. The letter requesting further information also states that the client will be removed from SA if details not provided within 30 days.All seems rather heavy handed?

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Kitten
By Hazel Accounts
07th Jun 2021 12:38

I've just had something similar - it took ages for HMRC to clear repayment of client's SA 19/20 (return filed July - not cleared until Dec) and then I was told a repayment deadline of March - didn't happen - was told further checks - I wrote to HMRC in frustration at end April and so then last week my client got one of these demands for further proof of id and completion of repayment questionnaire.

Refund was to go to client (I never touch client money), he's an employee not a contractor so really not sure why he recieved this but client will obviously complete it.

The bit that puzzles me is it says if he doesn't reply he will be removed from self-assessment. How can they do that given his particular tax circumstances obligate him to file a SATR according to the HMRC website!

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Replying to Hazel Accounts:
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By Lass
07th Jun 2021 12:46

I am finding generally, and before Covid, that repayments from SA and CT are taking longer and also need chasing up.The experience of staff answering the agent dedicated line varies enormously from those that have a clue and those that say "Computer says no" !

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Replying to Lass:
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By Hugo Fair
07th Jun 2021 14:30

The experience of staff answering the agent dedicated line (which I thought was shut) is not the only area where experience/competence is to be doubted ...

As Hazel Accounts said: "The bit that puzzles me is it says if he doesn't reply he will be removed from self-assessment. How can they do that given his particular tax circumstances obligate him to file a SATR according to the HMRC website!"

And the (likely) answer is that the idiot responsible for the wording in the letter knows 'nuffink abaht' SA. They'll have noticed that the people they're writing to have (often) been selected as those requesting a refund via submitting an SAR ... so the logic goes if you threaten to cut off that channel, then the greedy person will be unable to claim more refunds .. and will panic and comply!

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Replying to Hugo Fair:
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By Hugo Fair
07th Jun 2021 15:24

Sorry, only just noticed my typo (too late for editing) ... please replace SAR with SATR in last sentence!

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Replying to Hazel Accounts:
By SteveHa
07th Jun 2021 14:45

Hazel Accounts wrote:

The bit that puzzles me is it says if he doesn't reply he will be removed from self-assessment. How can they do that given his particular tax circumstances obligate him to file a SATR according to the HMRC website!

If HMRC's website lists anything other than "HMRC have sent a notice to file" as creating an obligation to file an SATR, then HMRC's website is wrong.

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Replying to SteveHa:
Kitten
By Hazel Accounts
07th Jun 2021 17:16

Yes, I was simplifying - the little question thing ( https://www.gov.uk/check-if-you-need-tax-return ) that tells you if you should register for self-assessment says he should. As a question of fact he already is registered and received notice to file for 2020 (year refund due for) and for 2021 (not yet filed).

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By Ian Lawrence
09th Jun 2021 09:47

My client had a "repayment" posted by HMRC which blocked another refund due to him. I assumed he had received this "repayment" but he hadn't when I mentioned it to him. I called HMRC and they said they wanted to do an identity and fraud check so posted this "repayment" back onto his account even though there was no such repayment. In effect making his HMRC account totally wrong. Had the client not been aware he had not received this "repayment" it would still be on his account today. Not a good way to deal with matters in my opinion

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By Homeworker
09th Jun 2021 11:14

Unfortunately fraud is rife at the moment. I have a client who had their tax account hacked, with a fictitious tax return filed resulting in a repayment (not due) being blocked and with threats to cancel their UTR. I tried to sort this out for them but our agent authorisation disappeared and we had to re-apply, while the client tried to phone back HMRC but couldn't get through. Meanwhile they "returned" the refund that had been processed as a liability on his account, making him underpaid, even though they had told him the refund was blocked.
I am still not sure if this one has been sorted out but as he still has to make returns we may need a new UTR!

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Replying to Homeworker:
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By Ian Lawrence
10th Jun 2021 11:22

Interesting. My clients account shows a repayment issued in the last couple of days which will put him in an underpayment position. But I have no faith now that the repayment is actually a repayment so I wait for the money to appear!

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Replying to Homeworker:
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By Homeworker
19th Jul 2021 16:49

Homeworker wrote:

Unfortunately fraud is rife at the moment. I have a client who had their tax account hacked, with a fictitious tax return filed resulting in a repayment (not due) being blocked and with threats to cancel their UTR. I tried to sort this out for them but our agent authorisation disappeared and we had to re-apply, while the client tried to phone back HMRC but couldn't get through. Meanwhile they "returned" the refund that had been processed as a liability on his account, making him underpaid, even though they had told him the refund was blocked.
I am still not sure if this one has been sorted out but as he still has to make returns we may need a new UTR!

This problem originally cropped up back in January when I had to file an "amended" return to overwrite the fraudulent return that had been filed. The client paid the tax that was due but I have now been told by the client that the Collector is chasing him for the the original, fraudulent "refund" that was processed but withheld while they checked it and was subsequently overwritten by the "amended" return I send them! There doesn't seem to be anyone working in the fraud department to sort this out and even the Agent Dedicated Line can do nothing except to refer it on...

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