PAYE refund delay

PAYE refund delay

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My client overpaid £12,500 of PAYE for 2014-15 and wants a refund. I have just spoken to HMRC's Employer Helpline and been advised that the earliest date he can expect the refund to be processed is 19/8/2016, apparently because of the 'backlog' of cases. There is no dispute about the validity of the refund.

Of course my client could opt to not to pay his PAYE until the overpayment is cleared but surely its his money and if he wants it back, he should have the right to receive it in a reasonable amount of time - NOT in 10 months?

I'm flabbergasted that HMRC can get away with this - even the guy on the Helpline sounded embarrassed. Has anyone else had a similar experience and had any success in appealing?

Replies (9)

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By johngroganjga
21st Oct 2015 10:05

I entirely agree.  But the

I entirely agree.  But the real problem is for employers without ongoing PAYE liabilities to deduct their debts from.  Your client does not seem to be in that category, so why is he not deducting the refund from his 2015/2016 payments?  

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Replying to Paul Crowley:
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By aj_cook
21st Oct 2015 10:10

Fair point. The refund was generated when we found a major error and filed an EYU on his behalf in the summer. He has cashflow issues and would like the money now - his monthly PAYE is only just over £1500.

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Time for change
By Time for change
21st Oct 2015 10:36

Initially, I would be looking towards

the Agent Account Manager (AAM) department to intervene in this.

No matter how the refund has arisen the delay which you mention is wholly unacceptable.

If the AAM section can't assist and, there is no certainty that they can, in these cases, you must immediately, contact and involve the client's Member of Parliament.

As I've said in other threads, relating to this issue, HMRC's Paye department is long overdue a public enquiry, specific to delays in dealing with refunds and Madam Homer can't persist in sticking her head in the sand.

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Replying to Cheshire:
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By aj_cook
26th Oct 2015 09:06

AAM unable to help

I have just had a call from the AAM department telling me that 'in the current climate' given their postal backlog (???) there is nothing they can do (even allowing for client hardship)

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By barbaracordner
21st Oct 2015 11:46

paye refund

Yes the timescale is outrageous, so much so I emailed my MP she intervened, and hey presto, the refund was processed.

 

I was advised by the person who arranged the earlier processing  that the timescale advertised is worse possible scenario and in fact refunds would ordinarily come through quicker - in fact one was processed far earlier than the date I was told on the telephone. 

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Time for change
By Time for change
21st Oct 2015 11:54

As I've inferred here and elsewhere

this HMRC department is an embarrassing shambles.

HM Treasury should hang its head in shame.

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Time for change
By Time for change
26th Oct 2015 09:31

I think you have little

choice but to seek the assistance of your (client's) MP.

One of my client's has just had a refund processed, just less than 2 months after I made a formal request. In fairness, that exactly matches what I was told, the timescale would be.

The date which you were given is simply not acceptable.

I would be tempted to initially, contact HMRC - Paye again and, if you can't obtain sensible terms (say a couple of months maximum) ask to speak to the individuals supervisor (line manager) and hopefully rise up the food chain. Don't be put off.

If all of that fails then seek the MP's intervention.

 

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By Steve1612
02nd Nov 2015 15:27

Refunds

I gave a client that has been waiting 6 months already for a refund of £7,500.00. We have spent hours on hold / ringing HMRC and have written to them FOUR times. All recorded delivery, all signed for, I have copies of the signatures and still no sign of any money. In fact they are still sending out chasing letters! - its absolutely disgusting!!

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By David Beaumont
02nd Nov 2015 16:47

Don't worry everybody...

... it's all tickety boo. All HMRC systems must be working perfectly, I mean they wouldn't be dashing towards replacing the tax returns with digital tax accounts errrr would they ? 

To be serious I encountered the same 'the repayment won't be processed for 8 months' I reminded them that it was my client's money that they were holding. I told them it was unacceptable and that they would make the repayment to my client within a reasonable timescale of three weeks. 

I received a phone call from HMRC the next day to tell me that suddenly they were able to do this and my client received payment after two weeks.

It worked this time but goodness knows how. Put it down to luck.

 

 

 

 

 

 

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