Is HMRC liable to apy

Tax repayment issued not as instructed

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A client living in the US has been sent a large tax repayment as a sterling payment order. despite clear written instruction to pay it into her UK bank account.She will probably now have to pay it into her US bank a/c. HMRC have apologised for the error

BUT..............

Has anyone recovered exchange and other costs from HMRC where they screwed up like this??

 

Replies (5)

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RLI
By lionofludesch
03rd Dec 2020 14:45

It's a bit like the new credit card charge régime.

Why should other taxpayers pay your client's bank charges ?

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By Tax Dragon
03rd Dec 2020 14:50

Can't she return the order and have it paid as she wanted?

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Replying to Tax Dragon:
By ireallyshouldknowthisbut
03rd Dec 2020 15:04

This is exactly what we did recently for a client in a similar situation. Took them about 4 months and several contacts to conclude however.

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Replying to Tax Dragon:
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By bernard michael
04th Dec 2020 09:27

Tax Dragon wrote:

Can't she return the order and have it paid as she wanted?


It's taken 5 months to get the repayment so I'm reluctant to do that and cause more delay particularly as HMRC will probably send the new payment back to her again.
It's just a pain that HMRC can't do the simple thing and look at the payment instructions
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By bernard michael
30th Dec 2020 14:06

Can now confirm the client has received the payment today. She's sending it by Fedex to her UK bank so it should get there quicker and safer
HMRC confirmed that if the payment order was stopped they would't pay the funds into the the UK bank as instructed but rather send another order to her in the US.

Do they do this deliberately or is it natural???

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