Inland Revenue - overpaying
Discussion
When I was doing my tax return recently I noticed that I had a few hundred overpaid from my previous tax bill still waiting for me to request it to be repaid.
I paid my tax bill - rather than risk them not taking into the fact I had overpaid I paid the whole lot including the previous payments on account I had made, thinking I'd be able to claim it back later.
Anyway, just logged on to check, and it says I have overpaid (as expected), but the amount *doesn't* include the amount overpaid before this tax year!!
Surely they don't write off any money you have overpaid after a year?? Can't find any reference to it online...
I paid my tax bill - rather than risk them not taking into the fact I had overpaid I paid the whole lot including the previous payments on account I had made, thinking I'd be able to claim it back later.
Anyway, just logged on to check, and it says I have overpaid (as expected), but the amount *doesn't* include the amount overpaid before this tax year!!
Surely they don't write off any money you have overpaid after a year?? Can't find any reference to it online...
- worried*
davepoth said:
Even if you're on PAYE it takes a few years for them to send a cheque.
On average, my clients have been obtaining their refunds within 14 days of their Self Assessment tax returns being submitted.The important thing is to
a) submit the return electronically
b) make sure that the box in respect of having overpaid tax refunded to you remains UNTICKED. You only tick the box if you DO NOT WANT the tax refunded (some people prefer to leave the overpaid tax from an earlier year "on account" for offset against future liabilities)
Also, you can opt to have overpaid taxes refunded through adjustments to your PAYE tax code instead of a direct refund to your bank or through a cheque.
Eric Mc said:
b) make sure that the box in respect of having overpaid tax refunded to you remains UNTICKED. You only tick the box if you DO NOT WANT the tax refunded (some people prefer to leave the overpaid tax from an earlier year "on account" for offset against future liabilities)
This is what I did which is why am pretty annoyed that it has just disappeared. I just hope I can get through to them this week and establish what's going on...Manks said:
Eric Mc said:
You need an accountant 
Yes, then your submissions can be properly wrong! Giving your accountant the opportunity to deploy his favourite defence: "but you signed off the figures Mr Client".[/bad week of accountant incompetence mode]
Eric Mc said:
Sorry, should have said "you need a GOOD accountant".
Easier than it may sound, Eric, as I am sure you know.I think the problem is that in any small / medium accountancy firm a client's account is devolved to the person whose expertise is just insufficient to deal with it. A bit like people being promoted to the level of their incompetence.
I cannot count the number of times an accountant has presented me with a set of accounts that were absolute nonsense and when I've pointed this out they say, "oh don't worry we can soon fix that". Don't worry? Don't worry? You've just taken the figures from a six figure loss to a six figure profit you dumbass. Did you have no underdstanding at all of what you were doing?
I am sure bigger firms that have their accounts audited don't have as many problems. But I've had some corkers. In fact I am having a tussle with an ex accountant at present over a six-figure error in the last accounts he prepared. His defence - "well you signed off the figures".
Manks said:
Eric Mc said:
Sorry, should have said "you need a GOOD accountant".
Easier than it may sound, Eric, as I am sure you know.I think the problem is that in any small / medium accountancy firm a client's account is devolved to the person whose expertise is just insufficient to deal with it. A bit like people being promoted to the level of their incompetence.
I cannot count the number of times an accountant has presented me with a set of accounts that were absolute nonsense and when I've pointed this out they say, "oh don't worry we can soon fix that". Don't worry? Don't worry? You've just taken the figures from a six figure loss to a six figure profit you dumbass. Did you have no underdstanding at all of what you were doing?
I am sure bigger firms that have their accounts audited don't have as many problems. But I've had some corkers. In fact I am having a tussle with an ex accountant at present over a six-figure error in the last accounts he prepared. His defence - "well you signed off the figures".
fergywales said:
Know this does not solve the issue, but I do urge that you make it known that these practices are occuring. Lodge complaint with firm, wait 14 days, lodge complaint with ACCA. I also know a good toothy solicitor that can get a nice settlement should it get to that level.
I am thinking very seriously about doing this.I had intended to let sleeping dogs lie, take the hit and move on. But the damage caused is proving a bit more widespread than I'd thought and the ex accountant, rather than putting his hands up, is making the situation worse by trying to claim that it was my fault for signing off his work.
It's a bit like a doctor blaming the patient when a heart transplant goes wrong because, "he said he was feeling fine and was very pleased with his new organ".
This I don't understand.
Say you have absolutely zero understanding of tax affairs - fair enough as your business is doing something else. So, you employ an accountant to deal with this for you. The accountant isn't very good and messes up. You get hit with large fines and interest payments.
Why isn't the accountant liable (providing all the information they have been provided with is accurate)?
Say you have absolutely zero understanding of tax affairs - fair enough as your business is doing something else. So, you employ an accountant to deal with this for you. The accountant isn't very good and messes up. You get hit with large fines and interest payments.
Why isn't the accountant liable (providing all the information they have been provided with is accurate)?
NiceCupOfTea said:
This I don't understand.
Say you have absolutely zero understanding of tax affairs - fair enough as your business is doing something else. So, you employ an accountant to deal with this for you. The accountant isn't very good and messes up. You get hit with large fines and interest payments.
Why isn't the accountant liable (providing all the information they have been provided with is accurate)?
The accountant is actually just an agent and all items submitted to HMRC are signed by the individual taxpayer or the directors of a limited company. If they sign off figures they don't understand they should be shot - frankly.Say you have absolutely zero understanding of tax affairs - fair enough as your business is doing something else. So, you employ an accountant to deal with this for you. The accountant isn't very good and messes up. You get hit with large fines and interest payments.
Why isn't the accountant liable (providing all the information they have been provided with is accurate)?
If an accountant produces a set of figures that don't make sense to you - get them changed - or at least get to the bottom as to why they don't appear the way you thought they should. Don't sign them off until you are satisfied that they are correct.
If a taxpayer or director is unhappy with the service provided by an accountant, they have two courses of action - complain to the accountant's professional body and/or sue.
At the moment, HMRC have no powers to pursue an accountant/agent for incorrect accounts or tax returns. However, there are proposals to bring in measures which will allow accountants to be charged penalties for eroneous figures on tax returns or accounts.
What you say makes sense of course Eric.
But for somebody who has very complicated tax affairs and doesn't really understand it it's a problem. They employ an expert, the expert explains away any doubts and queries, and it sounds plausible, so it gets signed off...
Does sound a bit unfair!
But for somebody who has very complicated tax affairs and doesn't really understand it it's a problem. They employ an expert, the expert explains away any doubts and queries, and it sounds plausible, so it gets signed off...
Does sound a bit unfair!
Eric Mc said:
The accountant is actually just an agent and all items submitted to HMRC are signed by the individual taxpayer or the directors of a limited company. If they sign off figures they don't understand they should be shot - frankly.
When an accountancy firm handles the bookkeeping, accountancy and tax affair for a business it is quite normal for the person signing the accounts / submissions / VAT retuurns not to know whether they are correct. They should know whether they are somewhere right but unless they are a fully trained accountant themselves, with up to date tax knowledge they have no reasonable way of checking the figures are correct, even if they go through every entry on Sage themselves.By your argument no one should sign off the work of a TV repair man without understanding electronics, nor rely upon the advice of a solicitor without first studying and fully understanding the law themselves.
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