The frustrations of taxpayers’ refunds disappearing into interminable HMRC security checks has not gone away, according to Cheapaccounting.org founder and blogger Elaine Clark.
Clark revived the issue last week in a blog post complaining about delayed tax refunds, including one that was eight months late.
The Revenue's decision to withhold significant tax refunds due without good cause or reason was frustrating and “morally repugnant”, she wrote.
VATadvice.org blogger leshoward reported, “I have seen an increase in the amount of time required to process repayments, especially VAT voluntary disclosures. One method appears to be setting a date two or three months or more in advance to visit to verify the claim. The main problem is that the taxpayer has to do the chasing and, in some cases, establish the legal right to the money.”
In Rebecca Benneyworth’s 2010 article, Martin explained that repayments can get “inhibited” if there is something on the record, such as a no repayment signal, that will prevent the repayment from actually being created.
If you view the client’s statement and the repayment is not shown as having been created, then it has been inhibited. “If the repayment is shown on the statement as having been created but you haven't had the money then it will have been selected for security checks,” she said.