RTI Allocation problems and Letters

HMRC Letters

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Could anyone let us know if you have a right for the HMRC to reply to letters or answer a query in writing ?

Our client has written 15 letters to the HMRC to try to resolve Tax payment allocation errors and would like the reply in writing, and to date has not had a reply to any of them - some were even sent by courier and signed for.

The community may also like to look into allocation errors as our client has had interest charges on payments that have been made and allocated elsewhere. As our clients dashboard has changed nearly every week with payments coming and going ( they  took screenshots ) they have no idea where they are. When they ring up the operators try to confuse them and say they operate a different system. However, the only system our client has is the online system and surely it should be correct ?

 

Replies (12)

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By TDRtax
24th Aug 2016 14:10

Appeal to FTT, have the letters available for presentation in evidence.

The Tribunals are getting more and more critical of HMRC when they fail to follow proper procedure, use unjustified delays, or simply do not engage with the taxpayer.

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Replying to TDRtax:
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By jlsTax
24th Aug 2016 16:53

If HMRC are applying penalties to client, then this is likely to work and FTT criticism may turn into successful appeal against penalty.

If you are trying to get a refund of an overpayment, I can't see that the FTT is likely to have any jurisdiction.

If the latter you may be better of using HMRC'c complaints procedure.

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Tornado
By Tornado
24th Aug 2016 14:18

This year I have had written to HMRC on two occasions (I only write as a last resort). No acknowledgements of receipt are issued and on one occasion I waited three months for a reply and on the other I waited four months.

Still, MTD is going to speed up the HMRC response to letters significantly .... isn't it?

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By Scriptic
24th Aug 2016 15:12

This is the legacy of Lin Homer whose tenure as head of HMRC was criticised as being a series of failings with "abysmal" levels of customer service". And what does the government do? They make her a dame. One can only despair.

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By Jemma Shipman
24th Aug 2016 15:38

I've also had issues with payment allocation, however to our favour (HMRC believe they owe us money). I have tried several times to reconcile the accounts so I can work out where the 'overpayment' has occurred. Every time I contacted them they were adamant that it was a genuine overpayment, and refused to believe their system was wrong.

I finally got to the bottom of the problem (3 separate issues adding up, spanning the last 6 tax years) and unsurprisingly each instance was an HMRC error - we haven't overpaid at all.

I then had the unfortunate task of trying to get them to correct said errors. We finally decided to give up wasting my work time if they refused to resolve the issue and claimed a refund.

The low point of my 'investigations' was when HMRC told me they could not provide a list of payments we have made (by direct debit) - but if I sent them a list they could cross reference. But that won't help me prove that they've double counted a payment now will it?!

Sorry for the (unhelpful) rant. I've been banging my head against the desk for weeks now so jumped on the first person who mentioned similar issues!

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By stratty
24th Aug 2016 15:45

I have one client who HMRC believe owe money (£20k) but the PAYE dashboard shows an overpayment of £4k.

The RTI system while a great idea in theory has been poorly implemented as is often the case with government and large scale projects.

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RLI
By lionofludesch
24th Aug 2016 16:01

I'm still waiting for a reply to my letter of 24 November 2002.

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Replying to lionofludesch:
Tornado
By Tornado
24th Aug 2016 17:03

lionofludesch wrote:

I'm still waiting for a reply to my letter of 24 November 2002.

It is probably still sitting on a desk somewhere in the "in tray" waiting for an Inspector to come back from an extended holiday (14 years). It might be a bit grubby now having fallen on the floor a number of times and been walked on.

It might be interesting to write a follow up letter to ask HMRC when you can expect a reply.

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Replying to Tornado:
RLI
By lionofludesch
24th Aug 2016 17:15

Tornado wrote:

lionofludesch wrote:

I'm still waiting for a reply to my letter of 24 November 2002.

It is probably still sitting on a desk somewhere in the "in tray" waiting for an Inspector to come back from an extended holiday (14 years). It might be a bit grubby now having fallen on the floor a number of times and been walked on.

It might be interesting to write a follow up letter to ask HMRC when you can expect a reply.

I'd rather not have one. They were claiming £8000 in Class 4 NI from my client but they seem to have accepted my suggestion that they (word of your choice) off.

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By lesley.barnes
25th Aug 2016 10:55

I'm at my wits end with the RTI payments for one client. He has the same debt collector - sorry field officer at his door every couple of months. I ring up the debt management, they confirm nothing is owing and away the debt collector goes. The problem occurred last year - money moved from the current year back to the previous year and then backwards and forwards again several times finally leaving a debt this year. In the meantime a payment he had made for £5k that caused the problem had gone missing somewhere. This happily has turned up now after more than 12 months and is in the process of being transferred. HMRC didn't find it - it popped up a couple of weeks ago as a credit on his Corporation Tax account. In typical HMRC style even though the money had been located the debt collector was back demanding payment. When I spoke to her she said she couldn't check the notes on the account and wasn't going to speak to the debt management team. I despair what will happened with MTD when we haven't even got RTI correct yet.

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By Malcolm McFarlin
26th Aug 2016 14:56

I wrote to HMRC in June 2016 re: a proposed change in the Flat Rate Scheme by recorded delivery which has been signed for. Sent a further follow up reminder but still no reply.
15 letters and a 14 year wait, as mentioned by others, will be too long for me at my age!

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By Jack Spratt
26th Aug 2016 17:38

Make a formal complaint and ask them to refund the fees paid by your client. I have just has a success on this.

HMRC allocated part of a payment to (what they incorrectly thought was) the clients liability. This was less than the actual liability which was paid in full.

The amount that was not allocated to that liability did not appear anyway - they don't seem to do double entry there.
They then repaid it (as a part of a larger repayment) and ............oh it is so boring and such a waste of time.

But they have asked for the further bill to be sent directly to them...

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