VAT not paid? No, HMRC allocation delay

Our client has received letters for last 3 qtrs regarding unpaid VAT, but it was paid!

Didn't find your answer?

Has anyone come across a recent phenomenon that a client pays VAT manually and then a week or two later , HMRC writes to them saying they haven't received the payment (but as this is only the first time, they will not have to pay a surcharge etc.) 

However all that happened was that HMRC was very slow to allocate it and very quick to accuse!?

A couple of weeks after the letter, the payment eventually shows up on their portal showing that it was paid in good time before the deadline, but of course, no subsequent letter apologising for their error has been received, so our client has had to call them to get the black mark removed.

Replies (5)

Please login or register to join the discussion.

By Duggimon
05th Jan 2022 10:29

I don't understand why anyone who pays in full and on time each VAT period doesn't use direct debit.

I have a couple of clients like that myself but I limit myself to re-suggesting it once or twice a year. It's just one more thing for HMRC to make a mess of otherwise.

Thanks (0)
Replying to Duggimon:
avatar
By Paul Crowley
05th Jan 2022 11:45

DD everytime
HMRC fault if late
Only one thing to do on clients that leave it to the last day

Thanks (0)
avatar
By JacquiMBurns
05th Jan 2022 18:57

I have a client who paid in full by the due date but has been surcharged by HMRC because the return was submitted late. I have explained to them that my computer crashed while I was submitting it but, as their own rules show, no surcharge would be issued if the money was paid on time but they just ignore letters. I have escalated it to an appeal but still have not even received an acknowledgement. They have now also assessed him for an additional payment on an agreement to pay his latest return on the basis of the first assessment which they should not have issued in the first place.
Another client who also paid their VAT of over £60k unfortunately sent it to the sort code for Corporation tax payments although they did quote the VAT number as the reference. Now HMRC are saying they cannot find it even though they have been given the date & amount of the payment, the details of where it was paid to & where it was paid from. Yet they have not repaid it to the clients bank. This has now been going on for over six months which even at the low bank rates achievable at the moment is a nice little earner for them.

Thanks (0)
avatar
By bernard michael
06th Jan 2022 09:36

If you expect an apology you probably also believe in Father Christmas and that MTDIT will be a runaway success

Thanks (0)
Jason Grant FCA
By yaakovgrant
06th Jan 2022 10:52

thanks all

Could be that the Deferred VAT instalments paid by DD have caused their system to crash!

Thanks (0)