Problems with VAT Payment

RLH33

Hello

Sorry if this in the wrong place to post it but I couldn't find anywhere more appropriate.

Basically after submitting a VAT return in April I transferred the amount owed to the HMRC by bank transfer the same day. We have now had a letter from HMRC who say that they haven't received the money. Lots of phone calls later it appears that my bank is saying we sent the money to the account specified which has been confirmed by HMRC to be correct. However HMRC can't/won't find the money.

My mistake was that I forgot the put my VAT number as a reference to the payment on the bank transfer. Therefore the HMRC are claiming that they receive thousands of payments and they can't/won't tally up our payment with a payment for the same amount, without a reference, made on a specific day in April.

I know that this was my mistake but I have made at least one payment in the past from our new bank account which also would not have had the reference, but that was received fine by them.

Does anyone have any advice on what I can do now? Again, I know it was my mistake but I have still sent the money, HMRC have received it, which my bank is adamant about, but now can't/won't find it. It is quite a lot of money, of an odd amount, so surely it is not impossible for them to find it and match it up as being received from our bank on a certain day? I know I have created a problem for them, but as far as I can see there is little I can do about it and they are saying that we have only a week left to sort it out.

Copious amounts of phone calls are getting us nowhere so I was wondering if anyone can give me some advice on where I stand and what I can do now to sort out this ridiculous situation.

olly300

Post this on the cutting tax board as there are helpful people there. http://forums.moneysavingexpert.com/forumdisplay.html?f=22

JasonLVC

The law states that you have to pay whatever VAT is due, by the due date.

You have done this.

HMRC do indeed have terible systems for tracing payments (whether cheques or bacs), but that is there problem, not yours.

No doubt, because they have lost your payment, they have sent you a surcharge liability notice saying that you are now in the penalty regime. If this is your first 'default' then there is no penalty/charges but we still need to sort this out.

Don't bother telephoning HMRC, they are next to useless. You need to write to them. Get the postal address of your local VAT office by using the VAT helpline (they are at least okay at giving addresses out) and write to local office explaining the problem.

You could also ask your bank to trace the payment and the bank will be able to state on exactly what date the payment was actually 'received' by HMRC and so this may help you pin things down to a specific day. HMRC should be able to find a payment on say 01 April 2009 for £x.00

You may need to go to tribunal to make your point clearer (there is no cost but is still a hassle) but hopefully writing to HMRC should clarify matters.

Failing that, post here again (or PM me) and we can see what can be done next. I'm an expert in the field of taxes/VAT and whilst frustrating, this problem shoud be fixed relatively easily, with a little patience and perseverance.

Andystriker

If this happened to me I would start at the bank.

Ask them if there was any text at all in the reference field on this payment. Ask them to put it in writing confirmation that the payment was sent on the date and they may even be able to give you a computer print out which confirms this.

Then when armed with this information I would telephone the VAT People and tell them about the evidence I had from my bank and I would make sure I told them about any refernce that may have been entered.

You will probably find at this point the revenue will find it but if they still deny receiving the money I would send to them by recorded delivery a copy (Keeping the originals) of the evidence the bank have given me that this money was paid with a letter asking them to confirm that they have received the money.

Go to your bank on Monday, ask to speak to the manager and ask them to provide proof that this money was paid.

RLH33

Thanks for all your replies.

JasonLVC - Thanks for your advice, I will certainly be writing to the VAT office as soon as possible, as you say my responsibility is to pay the VAT due, I have done that so I will place the ball firmly in their Court!! Thanks also for your offer of further advice, if it isn't cleared up quickly then I may be in touch again.

Andystriker - I have already raised this with the bank who are adamant that the money has gone to the account specified. They are supposed to be e-mailing me confirmation of this, promised on Friday but yet to be received:rolleyes:, but I will have to chase them again.