Hmrc tax refunded into wrong account

CGG

My husband has received a letter from HMRC confirming they have paid his Tax Refund into 'Account No. XXXXXXX6'. I checked the Bank Account No. provided to them on his Self Assessment form, and the Account No. given to them was XXXXXXX5.
The HMRC letter is dated 4.7.14, (although it has only just been received). They have credited the Tax Refund into someone else's bank account.
How long will they be sorting this out? I have been on the phone this morning for nearly half an hour now just on hold and being told the lines are busy and I'm in a queue.
Thanks in advance.

xylophone

I have been on the phone

Will they speak to you about your husband's tax affairs?

It might be preferable for him to write to HMRC concerning the matter?

CGG

Yes, he has, in the past told them they can talk to me.
I eventually spoke to someone, who checked and agreed there was a discrepancy in the account no. they have credited the refund to, but have said to call back in a fortnight if the amount hasn't correctly been paid into my husbands account.
They said the Bank will return the original payment to HMRC as the different name of the account holder will flag up a query?

xylophone

They said the Bank will return the original payment to HMRC as the different name of the account holder will flag up a query?

Have you checked with your husband's bank that this would be the case?

CGG

No - but I will phone them (Barclays), this morning. Thanks.

CGG

Well, that was an interesting call.
Basically, only the Sort Code and Account No. are taken notice of.
If these details happen to be a 'live' account, then the amount goes into that account, irrespective that the name(s) of the account holder differs from those on the HMRC record.
Only if the Sort Code and Account No. do not relate to a 'live' account will the BACS payment go back to the sender.

agrinnall

CGG wrote: »

They said the Bank will return the original payment to HMRC as the different name of the account holder will flag up a query?

This is nonsense, although I wouldn't necessarily expect a HMRC call centre operative to know it. What will happen is that the payment will be rejected by Barclays as the account number will fail check digit processing. It will then either be returned to HMRC automatically or sent to a suspense account, probably at the same sortcode, where it will stay until either Barclays get round to investigating, or HMRC ask for it back.

It's very unlikely that anyone your husband is able to speak to at Barclays will be able to tell him anything, the responsibility for recovering the money lies with HMRC.

And if they don't do it quickly I would be insisting they make the correct payment regardless given that the fault is entirely theirs.

CGG

Thanks. I guess there is nothing more we can do, other than sit the fortnight out - another week or more, and query again with HMRC if meanwhile the credit isn't already in the Bank.

jem16

CGG wrote: »

Thanks. I guess there is nothing more we can do, other than sit the fortnight out - another week or more, and query again with HMRC if meanwhile the credit isn't already in the Bank.

If nothing has been done after the fortnight, I would recommend writing an official complaint letter to HMRC. I did this for my daughter-in-law (with her authority of course) when a refund cheque was supposedly cashed but not in my daughter-in-law's account and the normal route was getting us nowhere. A week after the complaint letter was received my daughter-in-law had received her money and a compensation cheque for all the problems.

We are still waiting on the official explanation that was promised back in January but my daughter-in-law doesn't want to pursue this as she had spent over four months trying to sort it in the first place! As she was in Canada that had proved very difficult.

CGG

Good news! The Tax Refund has been credited to my husbands Bank Account this morning.
Thanks to those who offered their thoughts and advice on this.

purdyoaten

CGG wrote: »

Good news! The Tax Refund has been credited to my husbands Bank Account this morning.
Thanks to those who offered their thoughts and advice on this.

I would have to say that, for HMRC, that is remarkably quick!