This 'new' 30 day repayment rule

This 'new' 30 day repayment rule

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In the last few days we've been told by HMRC it is now their policy not to make any repayments until the client has gone at least 30 days without making a payment.

Why?  They seem as clueless about it as me, just that that is what their system is telling them.  There have been examples of clients paying money in error in January and who now have to wait weeks before HMRC will even do anything about it.  Also if they, for whatever reason, make another payment in that 30 days, they will reset the clock.

I'm annoyed if you can't guess...

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By Jekyll and Hyde
02nd Feb 2012 17:16

I don't have the answer BUT.....

...... the last time HMRC were playing silly buggers with tax repayments was around the time when A Darling informed us (after the event) that the country was a day away from disaster.

So reading a few posts on here and from reviewing the news over the last few weeks/months I do wonder whether it is a high level internal government policy to delay money leaving the banks of the Gov. and hence artificially propping up the country in what I can only describe as a potential collapse. For me it would fit in with all the European issues of late and would explain why no one really knows why these delays are in force.

 

 

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By frustratedwithhmrc
03rd Feb 2012 09:03

I think it might actually be fraud related

If I were to make a payment using a fraudulent cheque and then say "Oops, sorry - that was paid in error, can I have it repaid?". Then the possibility exists that the repayment cheque could be issued before they realise its a fraud - very unlikely obviously, but theoretically possible.

By introducing a 30-day rule, even given HMRC's level of incompetence, they are likely to have discovered the fraud and cancelled the payment.

I do think 30-days is a bit much, probably 10-days would be nearer the mark, but it is what it is.

 

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By adam.arca
03rd Feb 2012 09:44

Could it not also be the case....

....that the Revenue don't want to refund in error.

If a taxpayer makes a payment, then there's a good chance it's because they think they owe some tax. If the Revenue leave it a few days (although 30 days does seem excessive), then everything might be updated on their system and there's less chance of repaying money which was actually owed by the taxpayer.

This has happened a couple of times at least I can think of with clients and has caused loads of confusion: clients being clients, they remember the payment and think they have paid a certain instalment but always manage to forget about the subsequent refund.

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