Payment of CGT on a 60 day paper return

Do we have to wait for HMRC to process before making payment

Didn't find your answer?

Bit of a long shot , but I have a few clients for whom  we have had to submit paper CGT on residential property disposals . and I am being chased by them regularly as they want to pay the tax but we are waiting on HMRC to process 

(example of why we used paper - Can't set up a Gateway due to doesnt own a computer , aged over 90 and cant cope with using a comnputer any more , non resident without a NI  number , cant work the gateway and registered themselved as a trust in error !  )

After telling the client the tax is due 60 days from completion I now have returns that have been sent to HMRC 5 to 6 months ago we are still waiting to be processed . Clients just want to pay the tax and get it done , I am telling them we must wait for a reference number .

I am now telling clients it could take a year or more for the return to be processed , and no amount of chasing will get it done any quicker .

question  - Is there any bank account with HMRC we can arrange for payments to be sent to , which can easily be retrieved and allocated to the CGT reference once HMRC get round to issuing it ?    I suspect not , but just asking .  Certificates of Tax deposit may have been the answer in years gone by.






Replies (8)

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By Hometing
29th Feb 2024 11:31

Yes, no reference = no payment.

You could pay to their SA record for example and ask them to transfer it out. However, HMRC dont charge interest until after the payment details have been sent and the deadline advised.... so it would be pointless paying elsewhere in the meantime.

Let the money serve them in their own account, accruing interest until it needs paying.

Thanks (3)
By suepg
29th Feb 2024 12:05

I have a similar case. Client and his wife had CGT to pay on a 60 day return. Husband was able to be processed electronically but the wife had to be done on paper. This was 5 months ago. I have made three progress chasing calls to no avail & have been told there is no process available to collect the monies without the processing reference number.
I am at a loss as to how this can be considered acceptable!!

Thanks (0)
Replying to suepg:
By AndyC555
29th Feb 2024 12:24

"I am at a loss as to how this can be considered acceptable!!"

You could always write a letter of complaint. I did on behalf of a client last June about some shoddy service. I've just received an acknowledgement of the complaint and a promise to send a proper reply within a further 16 weeks. Unless they can't make the 16 week deadline when they said they'd write again with an update.

Thanks (2)
By Tornado
29th Feb 2024 13:24

It took 6 months for a 60 Day Return to be processed for one of my clients and I can confirm that the payment was due within 21 days of the approval letter which contained the payment reference number and confirmed the amount to pay. No interest was charged for the period up to the processing letter date and the 21 day payment window.

I had no idea what was going on as HMRC did not acknowledge receipt of the submitted Return, so it was just a matter of waiting.

Thanks (5)
13th Mar 2024 10:55

Just had an enquiry from client on this. Return submitted in the latter half of September last year. From other posts, it seems it HMRC may get to deal with it soon.

Thanks (1)
paddle steamer
13th Mar 2024 11:02

Interestingly one can make a payment using the online CGT account number as payment reference number (by mistake) rather than the payment reference number that ought to have been used. HMRC certainly take/accept such a payment, what they do with it I have no idea as it is certainly not sitting in my employer's tax account and he has had to write to them showing it was paid last May, sorry for reference error and can they please allocate correctly. Still, it was not much money, only just over £30k so who would bother checking out such an amount held no doubt somewhere in suspense.

Thanks (1)
By DonDan
13th Mar 2024 11:40

I had exactly this situaiton today with a paper return sent in November 2023. When i eventually spoke to someone they advised that based on the submission date it could now be sent on to the CGT department who will process in the next ten days then send out a confirmation letter within 14 days

Thanks (1)
By gainsborough
13th Mar 2024 16:33

The system is such a shambles at the moment. I am also trying to chase a response from HMRC re a CGT paper return submitted in November 2023 (as the online system didn't work), webchat not accepting queries and I have been waiting on the phone for 25 minutes so far. I dread to think what calling in January will be like.

Thanks (1)