What happens if I ignore HMRC cheque?

janeskips2

I have received a repayment cheque from HMRC in relation to their calculation of my income tax overpaid through PAYE. The amount is not correct and moreover the amount I was due was already repaid following completion of Self Assessment which this calculation seems to ignore. Can I ignore this cheque? Do I return it back to HMRC? Or must I claim it? If I claim it do I change my completed Self Assessment for this year or will I have to show it next year.

Any idea why HMRC does this? Self Assesment completed almost 2 months ago and payment received a few days later and now they send me this duplicate on an old calculation.

BoGoF

You really need to ask?

Send it back with a letter saying you have aleeady had a repayment via Self Assessment.

nick74

BoGoF wrote: »

Send it back with a letter saying you have aleeady had a repayment via Self Assessment.

That's far too sensible and logical an approach for HMRC's systems to cope with . Personally I would cash any erroneous cheque sent by HMRC, but then be prepared to immediately repay the money.

Years ago we had a client who received a £1200 repayment cheque in error from HMRC. The client knew it was incorrect so posted it back with a covering letter to HMRC...who promptly lost both the letter and the cheque. In the meantime HMRC's computer caught up and realised the repayment had been sent in error so started chasing the client for the £1200 which they'd never actually cashed. But, as far as HMRC were concerned they'd sent the client a cheque for £1200, so they were down £1200 and they wanted it back. The client didn't have the £1200 to pay back because they hadn't cashed the cheque and couldn't if they wanted to because HMRC had lost it...... It seemed totally impossible for anyone at HMRC to manually cancel the cheque off the system, and took weeks and weeks to sort out. Perhaps HMRC's systems have improved since then, but somehow I doubt it.

janeskips2

"A cheque sent is an amount repaid" is a view I can absolutely anticipate HMRC taking. They could probably confirm a cheque has not been cashed but if it were to not reach the right place on being returned there could always be the accusation that it had not been returned I suppose. Although I'm not sure if anybody would be so foolish to try such a scam and cash it later. I suppose similar could happen with the cheque being lost on the way from HMRC to the person in the first place. What happens then, do they send another? In that case they would surely cancel the first. If they have that ability that would be best. Seeing as there are no definitive answers I may contact them and ask about this option first. Is the phone service suitable for this or is it too complicated for regular customer service and I should write a letter or use the online messaging?

If I were to cash now is the correction a repayment outside of the self assessment process? I thought I would either have to resubmit my current year's assessment accounting for it or take it into account in next year's assessment.

gdrforest

I had the same 2 years ago. I rang them and they made a note on my account and asked me to destroy the cheque. I wasn't going to dispose of the evidence so I cut it up but filed it. There has been no comeback.

tebthereb

Just call them and ask to cancel the cheque

yorkiechick

I get this a lot with clients who are in Self-Assessment and have PAYE income. The two departments in the tax office do not speak to each other!
If you call the tax office and explain you've received a PAYE calculation but you are in Self-Assessment and have already received the refund, they'll update your file and ask you to destroy the cheque.