close menu

Tax payments bounce after HMRC changes bank account

by Kobus Van den Bergh | Jun 01, 2016
  • HMRC has changed its IBAN bank account without properly informing taxpayers. 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.
  • 73_Tax-payments-bounce-after-HMRC-changes-bank-account

    Which businesses have been affected?

    Any company or contractor paying tax using IBAN may be at risk. Most, but not all, of these taxpayers 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 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.

    Give us a call on +44 (0) 80 8141 1643 or send us an email, and we’ll help you make sure your tax affairs are settled.

    • london-bus-ben
      Applying for your NI number: Don’t go it alone
      Jun 12, 2018  |  by Leanne Shrosbree
    • london-thames-big-ben
      10 reasons why London is still our favourite city
      May 04, 2018  |  by Leanne Shrosbree
    • man-working-at-home
      Get the most out of being a contractor in the UK by following these simple steps
      Mar 15, 2018  |  by 1st Contact
    • tax-hand-magnifying-glass
      Reap the benefits of submitting your Self Assessment tax return early
      Mar 02, 2018  |  by Kobus Van den Bergh
    • students-graduating
      UK student visas: Here's how you can get one
      Feb 22, 2018  |  by John Dunn
    • students-school-chalk-board
      Get your child into state-funded school in the UK
      Feb 21, 2018  |  by Leanne Shrosbree
    • medical-cross-and-heart
      The NHS vs Medicare: Which is better?
      Jan 30, 2018  |  by 1st Contact
    • big-ben-london-at-night
      What is the cost of living in London in 2018?
      Jan 25, 2018  |  by 1st Contact
    • house-key
      To rent in the UK, you absolutely need to have the right to rent
      Jan 19, 2018  |  by Leanne Shrosbree
    • man-making-more-money
      This is how contractors can take home more cash
      Jan 09, 2018  |  by Kobus Van den Bergh

    Do you like cookies? We do, read why.