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Post back excessive refund cheque to HMRC?

Will HMRC cancel and delete?

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HMRC has refunded a large cheque for corporation tax for my client, which should not have happened as the amount is actually due.
Can we post it back and ask them to cancel the cheque?
If my client were to bank it and send another he would be liable for late payment interest

Replies (7)

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By paul.benny
14th Oct 2019 13:12

Why not call HMRC and ask them?

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By SteveHa
14th Oct 2019 13:31

I've returned incorrect repayment cheques to HMRC in the past without issue.

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By sparkler
14th Oct 2019 13:50

Do you know why the repayment cheque has been sent to the client? I have had this happen quite a number of times, and it is always, without exception, because the client has used an out of date reference number on their corporation tax payment. I have found that HMRC have no way to deal with this (such as transferring the payment to the correct year on their system) other than refunding the payment, by cheque! I then remind the client of the reference number (again) and ask them to pay again once the refund cheque has cleared.

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Replying to sparkler:
By Duggimon
14th Oct 2019 14:14

HMRC have told me that in the past, and presumably have told you that in the past as well, hence your post, but it's not true. They absolutely can and do reallocate payments with an incorrect reference to the correct year, just not always.

Trying to convince anyone of that over the phone when their computer says otherwise is an exercise in futility though.

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Replying to Duggimon:
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By sparkler
14th Oct 2019 14:23

The problem is, by the time we find out about the incorrect reference, the client has received a large refund cheque. It's usually simpler for them just to cash the cheque and make payment again.

If we knew about the incorrect reference before HMRC decided to refund the payment, perhaps it would be easier for them to reallocate.

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By frankfx
14th Oct 2019 13:58

Sparkler is on the mark.

Be wonderful if the accountant could have his time costs reimbursed by HMRC.

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By pauljohnston
16th Oct 2019 11:04

I am with SteLacca on this one.

Clearing the cheque could amount to fraud since beneficiary is not entitled to the money.

Send the cheque back with a letter - it works everytime

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