HMRC has changed its IBAN bank account without properly informing tax payers. This means that millions of Pounds in Corporation Tax and VAT payments made since February are bouncing. As a result, HMRC is unfairly sending out penalty notices to UK business owners. We show you how to find out whether your business has been affected.
Which businesses have been affected?
Any company or contractor paying tax using IBAN may be at risk. Most, but not all, of these tax payers are foreign businesses who have operations in the UK.
By paying their tax into the wrong accounts, these businesses are being flagged by HMRC as being late with their payments. HMRC then serves penalty notices to these businesses.
Many business owners only discovered that HMRC had changed bank accounts when they received penalty notices.
To add to the confusion, HMRC gives no clear indication on how to make payment on these outstanding amounts. However, the correct IBAN reference can be found on the Gov.uk website.
Some businesses were informed of the changes to the IBAN account, but many firms disregarded these notices. Why? According to the Guardian, these firms, and some of their accountants, thought the letters were a hoax as they were riddled with grammatical errors.
HMRC admin takes focus away from your business
Being in this situation can be incredibly stressful. You don’t want to be dealing with this type of admin when you have a business to run.
Mistakes like this would not be a massive problem if it were easy for individuals to directly contact HMRC. Unfortunately, this is often not the case. Business owners frequently complain about long hours spent on the phone trying to get through to the right employee at HMRC, often ending in a dead end and frustration.
These unresolved issues are all the more stressful when the threat of penalties loom large for non-compliance.
Let us deal with HMRC
1st Contact Accounting can contact HMRC on your behalf and sort out any misinformation or unclear announcements from the tax man. Should you use as your accountants, we can act as your authorised agent, which means an easier and more effective way to deal with HMRC correspondence.
If you’ve received a penalty notice, or are unsure if your business has paid its Corporation Tax and VAT correctly, we advise that you contact us for a consultation.