Why can't HMRC do proper accounting receipts

When HMRC recieves a payment is sometimes allocates it all over the place..............

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First the admission. The client (and her husband) have been in a bit of a muddle financially and have made mutiple payments on account of their tax liabilities.

HMRC receives the payment and then allocates it all over the place - different tax years, different dates, different liabiities etc. And it is hugely time consuming to try and pull all of this together.

And then on top of that, if there is anything "left over" - ie an element of overpayment it does not show anywhere in the figures but sits in a suspense account somewhere.

Is it too much to think that they should run a striaghtforward account for all of the taxpayers liabilities and payments/

Will this ever happen?

Replies (7)

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RLI
By lionofludesch
20th Aug 2021 10:58

In fairness to HMRC*, it's usually to minimise interest charges to the taxpayer.

But I agree that it's hugely confusing.

*Not like me at all, is it ?

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By BudgetB
20th Aug 2021 13:20

Unless specifying a reference when the payment is made they will always allocate to the oldest debt first in order to minimise interest. But no, they will never make this simple and have everything in one place!

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Replying to BudgetB:
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By legerman
20th Aug 2021 14:29

BudgetB wrote:

Unless specifying a reference when the payment is made they will always allocate to the oldest debt first in order to minimise interest. But no, they will never make this simple and have everything in one place!

Not necessarily so. I have a client who was paying off an HMRC SA debt which was spread over (I think 3 years) On oldest year there was an amount outstanding (say £100) but every time the client paid the £100 it would allocate it to a newer tax year. It eventually cleared of that one when he was down to his last 3 or 4 payments.

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Replying to legerman:
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By gillybean04
20th Aug 2021 21:07

Was it interest?

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Scooby
By gainsborough
20th Aug 2021 14:02

Agree with the above. Have you tried going into the client's online account and clicking on the payments/credits received link? You then see how each individual payment has been allocated, which might make your job a bit easier.

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Replying to gainsborough:
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By alialdabawi
20th Aug 2021 16:52

Or more difficult, depending on how HMRC have allocated...

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By GHarr497688
25th Aug 2021 23:28

No it won't happen until humans start checking what the computer rubbish spills out !!

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