Missing PAYE payments on HMRC account

My client has paid, but HMRC are chasing unpaid PAYE

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My client paid the month 8 PAYE bill on 30/11/2023 and their month 9 PAYE bill on 22/12/2023. HMRC has written to them and is chasing these 'unpaid' PAYE bills. The payments are not showing up in the HMRC account. Before waiting for an age on the phone to HMRC, I was wondering if other accountants are having a similar issue at the moment and have any pertinent information about this issue?

Thank you for any help.

Replies (13)

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By sparkler
08th Feb 2024 11:16

Have you checked that the payments are not showing up as "unallocated"? If you click on the list of payments received, you will be able to see any payments that have come in, which are marked as unallocated. This is sometimes because the reference is not correct (remember it changes every month) or the amount doesn't quite match what HMRC are expecting.

If a payment is unallocated, HMRC don't sensibly just allocate it to the most obvious payments due, but will leave it sitting as unallocated and just continue to chase. I have one of these at the moment (client both used the incorrect reference for the quarter in question, and also overpaid slightly) and am just steeling myself for the inevitable phone call to HMRC to tell them where to allocate the payment to...

Hope this helps!

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Replying to sparkler:
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By Hamlin
08th Feb 2024 11:41

Thank you for your response. It was a good idea, but the payments are not showing as unallocated.

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By sparkler
08th Feb 2024 11:52

That's a shame - I can't think of an alternative other than to call HMRC. Perhaps try their PAYE webchat first (although it didn't work for me the other day - no advisers available). For missing payments they usually require full details of:
- exact payment amount
- date
- account details payment sent to
- account details payment sent from

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By The Rogue
08th Feb 2024 11:54

i have seen that HMR&C struggle a bit if a monthly payment does not arrive between the 5th and the 22nd of the following month which appears to be the case here. I always recommend that people do not pay early.

Thanks (3)
Replying to The Rogue:
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By Hamlin
08th Feb 2024 12:11

Ah ha! That's exactly the sort of useful nugget that I was hoping for.
Thank you.

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Replying to Hamlin:
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By FactChecker
08th Feb 2024 13:47

That 'payment period' is not official, although you can see HMRC's perspective (as in if it arrives before 6th then who's to say there won't be additional or amending FPS arriving for that tax month?).

But to the best of my knowledge the result of such an early payment (IF it fails to be allocated) will not be that it disappears into the ether, but goes to 'unallocated' (so you're back to that possibility).

Assuming that you've checked the obvious (that the payments actually left your client's account), you'll need all the associated information from the bank - paid to whom and on what date - in order to take up the cudgels and phone HMRC.

Thanks (2)
Replying to FactChecker:
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By FactChecker
08th Feb 2024 13:51

One other thought ... does your client owe (or remain in dispute with) HMRC for any other taxes?

They are not supposed to do this, but it's not unknown (if they can find an excuse like an early and unallocated payment) for HMRC to throw it into a wider pool of wholly unrelated taxes that they see as overdue.

Thanks (2)
Replying to FactChecker:
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By Hamlin
08th Feb 2024 14:39

No - a good client, but a good idea.

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By Lisa R
08th Feb 2024 15:17

Is it possible that they could have accidentally paid the amounts to a different HMRC bank account, such as Corp Tax or VAT?

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Replying to Lisa R:
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By Hamlin
08th Feb 2024 15:19

No - they are all to the right account.

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Jane
By Jane Evans
08th Feb 2024 15:59

I find that writing to the Collector of Taxes works very well. They deal with letters within 24 hours of receipt. Much better than trying to phone, and phone calls only result in an internal referral to the Collector, so you might as well make sure that your information is correct.

Include all the details including which bank account has made the payment and what you want to happen. Write to the Collector at HMRC Direct BX5 5BD.

Thanks (3)
Jane
By Jane Evans
08th Feb 2024 15:59

I find that writing to the Collector of Taxes works very well. They deal with letters within 24 hours of receipt. Much better than trying to phone, and phone calls only result in an internal referral to the Collector, so you might as well make sure that your information is correct.

Include all the details including which bank account has made the payment and what you want to happen. Write to the Collector at HMRC Direct BX5 5BD.

Thanks (0)
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By bernard michael
09th Feb 2024 10:06

Strangely I am dealing with a similar case.

It started with a letter in June 2023 claiming PAYE/NIC arrears of £16000+ from 2019 to 2023 plus interest.

The client went mad and showed me monthly detailed payments going to the correct reference every month. He contacted HMRC and wasn't very polite (his words).
Another letter arrived 2 months later reducing the figure to £8+ but including the old interest. He then contacted them and it all went quiet

In November 2023 another letter arrives claiming £731 plus the ongoing interest

Feb 1 2024 a letter claiming £8515 plus interest. In the same post another letter also 1st Feb claiming£723

What is more strange the client thinks this is unusual. I have put him right but even I am having doubts about the situation

I'll try the Collector Taxes route suggested above

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