HMRC VAT Party Brewery Organise couldn't
Discussion
How frustrating are they?
VAT due to be paid Wednesday, had a call from my old bank saying they had received a DD for the VAT and had insuficient funds. I had told HMRC and had confirmation 6 weeks ago that I had changed the bank account from which they should take the VAT money each quarter.
Called HMRC, yes they had the new account details and it would be taken later that day. I checked it every few hours all day wednesday and tHuirsday and first thing this moring and itt wasn't so this morning I rang the VAT 'helpline' who tell me the DD hasn't been changed and I had to ring their finanace unit in London. They gave me a number (the wrong one) and I spoke to some gormless chuff who effectivey said it wasn't her counter and she couldn't put me through because the switchboard didn't start work until 9am.
I suspect they will be chasing me for payment very soon and I wil have to spend more time putting this right.
We were fined for being just a few days late with VAT payment (second 'offence'). The returns themselves were submitted on time, but not the payment (but that followed shortly after). As a young and small business with some clients on 90 days payment terms, it just wasn't possible. Cash accounting wasn't realistic either for various reasons.
It's un-bleeding-believable how uncooperative and inflexible they are. Over £2.5K fine for a few days late; serious criminals will get less than that, and a fecking holiday in the Canaries, to boot.
Ah well, at least we're 'over the hump' now, but their incompetence and unsupportive attitude is hard to forget.
It's un-bleeding-believable how uncooperative and inflexible they are. Over £2.5K fine for a few days late; serious criminals will get less than that, and a fecking holiday in the Canaries, to boot.
Ah well, at least we're 'over the hump' now, but their incompetence and unsupportive attitude is hard to forget.
jacobyte said:
We were fined for being just a few days late with VAT payment (second 'offence'). The returns themselves were submitted on time, but not the payment (but that followed shortly after). As a young and small business with some clients on 90 days payment terms, it just wasn't possible. Cash accounting wasn't realistic either for various reasons.
It's un-bleeding-believable how uncooperative and inflexible they are. Over £2.5K fine for a few days late; serious criminals will get less than that, and a fecking holiday in the Canaries, to boot.
Ah well, at least we're 'over the hump' now, but their incompetence and unsupportive attitude is hard to forget.
So far I have had 3 wrong numbers (they gave me the Bank of England BACS team ("what do you expect me to do?"It's un-bleeding-believable how uncooperative and inflexible they are. Over £2.5K fine for a few days late; serious criminals will get less than that, and a fecking holiday in the Canaries, to boot.
Ah well, at least we're 'over the hump' now, but their incompetence and unsupportive attitude is hard to forget.
who sent me to the Bank of England DD team ("not my counter" who sent me to the paymaster general ( "Not us mate". Finally I ended up back at the helpline who gave me a different electronic helpline who contradicted what I had been told on Wednesday about there being a D in place and gave me the number of their DD team who promised to fax me a paper DD (and didn't). I am now late with payment and have wasted several hours trying to sort it out having been assured it was all Ok on Wednesday.
So much for E-Government.
jacobyte said:
We were fined for being just a few days late with VAT payment (second 'offence'). The returns themselves were submitted on time, but not the payment (but that followed shortly after). As a young and small business with some clients on 90 days payment terms, it just wasn't possible. Cash accounting wasn't realistic either for various reasons.
It's un-bleeding-believable how uncooperative and inflexible they are. Over £2.5K fine for a few days late; serious criminals will get less than that, and a fecking holiday in the Canaries, to boot.
Ah well, at least we're 'over the hump' now, but their incompetence and unsupportive attitude is hard to forget.
How long ago was this?It's un-bleeding-believable how uncooperative and inflexible they are. Over £2.5K fine for a few days late; serious criminals will get less than that, and a fecking holiday in the Canaries, to boot.
Ah well, at least we're 'over the hump' now, but their incompetence and unsupportive attitude is hard to forget.
Legally no.
Interest charges are based on "restitution" to the Exchequer - not a punsihment on the late payer.
The Revenue's argument is that you held on to the money too long and therefore they were deprived of it at the time it was rightfully there's. They could have earned interest on that money, so, they claim the lost interest from you.
Conversely, YOU could have gained some additional interest by keeping the money in your bank account instead of paying it to the Revenue when it was due.
Interest charges are based on "restitution" to the Exchequer - not a punsihment on the late payer.
The Revenue's argument is that you held on to the money too long and therefore they were deprived of it at the time it was rightfully there's. They could have earned interest on that money, so, they claim the lost interest from you.
Conversely, YOU could have gained some additional interest by keeping the money in your bank account instead of paying it to the Revenue when it was due.
The surcharge is not interest. It is a charge of a certain percentage of the amount of VAT overdue, irrespective of whether it is overdue by one day or one year.
Unless of course my understanding of "interest" is incorrect.
If it were interest, then yes, I wouldn't have a problem with it. What I have a problem with is the HMRC's inflexibility and unsupportiveness of small businesses, not only in their actions, but also their very rude trafficwardenesque letters.
Unless of course my understanding of "interest" is incorrect.
If it were interest, then yes, I wouldn't have a problem with it. What I have a problem with is the HMRC's inflexibility and unsupportiveness of small businesses, not only in their actions, but also their very rude trafficwardenesque letters.
Yes, telephoned first, then they gave me the address for appeals. So I sent a very polite and informative letter to the appeals. They sent me the rather long snotty reply, saying we can take it to an independent tribunal if we wish, but if it's late then it's late, irrespective of whether it makes sense for them to support fledgling businesses.
I quote: "the law does not consider lack of funds to be a reasonable excuse for late payment of VAT due."
Taking it further would be more expensive (in terms of time lost) than the actual amount of the fine (sorry, 'surchage'), so there's no point. Furthermore, it is unlikely the decision would change, as 'the payment was late, period, innit, amibovvered, computersaysno'. They win.
I quote: "the law does not consider lack of funds to be a reasonable excuse for late payment of VAT due."
Taking it further would be more expensive (in terms of time lost) than the actual amount of the fine (sorry, 'surchage'
), so there's no point. Furthermore, it is unlikely the decision would change, as 'the payment was late, period, innit, amibovvered, computersaysno'. They win.Leftie said:
Had to send them a cheque in the end as the new direct debit (set up after 3 calls and 3 faxes) can't collect on old returns. Seems it is not enough to tell them you have changed banks, you have to tell a different unit by phone and then letter/fax so they can set up a new DD.
Today they wrote sayiong the D had been cancelled.I know mate, I cancelled it, just as I told you last week and if you look in your mail bag you have the cheque.
Eric Mc said:
Legally no.
Interest charges are based on "restitution" to the Exchequer - not a punsihment on the late payer.
The Revenue's argument is that you held on to the money too long and therefore they were deprived of it at the time it was rightfully there's. They could have earned interest on that money, so, they claim the lost interest from you.
Conversely, YOU could have gained some additional interest by keeping the money in your bank account instead of paying it to the Revenue when it was due.
Slightly O/T but could the same not be said for income tax? I've been told i must pay 50% of my NEXT years tax at the end of January, the other half due the end of July. That money usually wouldn't leave my (high interest) account for another 12 months-will they pay me interest? Interest charges are based on "restitution" to the Exchequer - not a punsihment on the late payer.
The Revenue's argument is that you held on to the money too long and therefore they were deprived of it at the time it was rightfully there's. They could have earned interest on that money, so, they claim the lost interest from you.
Conversely, YOU could have gained some additional interest by keeping the money in your bank account instead of paying it to the Revenue when it was due.
No - unless the Payments on Account turn out to be higher than the actual liability.
Say your ultimate 2007/08 tax liability comes to £5,000. and say the two payments on account you made on 31 January 2008 and 31 July 2008 respectively come to £6,000 (this can happen) - this means that you will have overpaid your overall 2007/08 tax liability by £1,000.
In those circumstances, the Revenue will DEFINITELY pay you some interest.
Say your ultimate 2007/08 tax liability comes to £5,000. and say the two payments on account you made on 31 January 2008 and 31 July 2008 respectively come to £6,000 (this can happen) - this means that you will have overpaid your overall 2007/08 tax liability by £1,000.
In those circumstances, the Revenue will DEFINITELY pay you some interest.
Edited by Eric Mc on Wednesday 18th July 09:13
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