MARTIN LEWIS Q&A WITH RISHI SUNAK
Chancellor Rishi Sunak joined Martin for a video Q&A to discuss the cost of living support package that was recently announced - you can watch it HERE

Problems with HMRC over my Company Paye account (long post sorry)

edited 9 December 2009 at 6:52PM in Cutting Tax
15 replies 3.9K views
2»

Replies

  • cottagercottager Forumite
    934 Posts
    ✭✭✭
    angelavdavis, have PM'd you.
    ~cottager
  • PennywisePennywise Forumite
    13.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    Are you sure that they owe you £8k on your PAYE account. For them to owe it to you, you must have paid more than that to them in the past. If you paid it to them, then you must have done so for a reason.

    PAYE is "self assessed" after all in that you as the employer work out the tax and NIC and pay it over to HMRC and then send them a year end returning which should balance against payments made. HMRC won't repay any "apparent" overpayments until they've got to the bottom of why the overpayment has arisen, simply to satisfy themselves that your records and returns were right. After all, you paid the money and you sent the returns, so if they don't balance against eachother then HMRC will rightly want to know how you got it wrong.

    I'd suggest that perhaps they don't owe it after all, and it's some form of error that is causing it to look that way. If you've always done your own payroll and PAYE returns, I can't believe that you managed to get it so wrong that you overpaid by so much.

    Don't waste your £270 until you are sure that they really do owe you the £8k. It's pretty pointless to pay £270 just to get back the £75 that they definitely owe you. Can't you go back through your PAYE returns and payments to try to find where things went wrong, if indeed they have gone wrong and the £8k is correct.
  • edited 11 December 2009 at 9:08PM
    angelavdavisangelavdavis Forumite
    4.7K Posts
    Mortgage-free Glee!
    edited 11 December 2009 at 9:08PM
    Hi Pennywise, I have also been wondering as I simply couldn't believe that I could have overpaid by that much. This is why I have delayed doing any more. I simply haven't had the time to go over everything.

    I deliberately paid myself PAYE instead of Director dividends because I got so much hassle from HMRC ten years ago when I ran my previous business, was a lot more naive than now and used an accountant who recommended this. So I set myself up on PAYE as I figured it was more trouble than it was worth to do any different.

    They claim the overpayments were made over the two years the company traded (even more unbelievable as I submitted year one PAYE return on time also yet they haven't "discovered" this overpayment until now!) However, I did have issues with the software at one point when, after a budget, they reissued the CD and it wiped my previously entered data. So, it is possible that this could have caused me to pay the PAYE twice in one month - but it only happened once and I am good at matching transactions on the bank statements so cannot believe that I could have missed this.

    I have got to go back over all my accounts to see if I can spot any errors, but I suspect, once I have spent the time scrutinizing the books that the PAYE is correct.

    I am hoping to get the time this week to do this.
    :D Thanks to MSE, I am mortgage free!:D
  • Harry, I got the distinct impression that they are in complete pandomonium there for sure!! I am sure that is why they just give out more phone numbers in order to mark your query/complaint as dealt with.

    DCodd, I am kicking myself because when I requested this, they stated I had to give them the exact start and end time of the call as well as the date and phone number I had dialled. I made a note of dates, but not start and end time of calls and lost track of the phone numbers in the end on some of the calls (I redialled other numbers at their direction 5-7 times on more than three occasions). So, can only blame myself on this occasion.

    It is just all smoke and mirrors for delaying tactics - as I said in the complaint letter "is this HMRC's idea of service?"
    :D Thanks to MSE, I am mortgage free!:D
  • PennywisePennywise Forumite
    13.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    Hi Pennywise, I have also been wondering as I simply couldn't believe that I could have overpaid by that much. This is why I have delayed doing any more. I simply haven't had the time to go over everything.

    I deliberately paid myself PAYE instead of Director dividends because I got so much hassle from HMRC ten years ago when I ran my previous business, was a lot more naive than now and used an accountant who recommended this. So I set myself up on PAYE as I figured it was more trouble than it was worth to do any different.

    They claim the overpayments were made over the two years the company traded (even more unbelievable as I submitted year one PAYE return on time also yet they haven't "discovered" this overpayment until now!) However, I did have issues with the software at one point when, after a budget, they reissued the CD and it wiped my previously entered data. So, it is possible that this could have caused me to pay the PAYE twice in one month - but it only happened once and I am good at matching transactions on the bank statements so cannot believe that I could have missed this.

    I have got to go back over all my accounts to see if I can spot any errors, but I suspect, once I have spent the time scrutinizing the books that the PAYE is correct.

    I am hoping to get the time this week to do this.

    Two points:-

    HMRC don't routinely tell you if you've made overpayments - they are always quick to send out demands when you've underpaid but not when it's in their favour unless you ask them to.

    I note what you say about the payroll crash - I know you're thinking about whether you've paid the PAYE twice, but is it possible that you didn't re-enter the earlier months properly onto the software, so rather than your payments being wrong, are you sure your software, and hence your end of year P60 and P35 aren't wrong?

    At the end of the day, even if you do re-open the company, HMRC aren't going to repay this until they're happy everything is right and that you really have overpaid - to do this, they normally ask for payroll deduction working sheets etc to prove the returns were right, so you're going to have to check your payroll to see if you can find where the error lies - i.e. whether it's the returns or whether its the payments.
This discussion has been closed.
Latest MSE News and Guides