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 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.
  • 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 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.

    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.

    • woman-alarm-clock-scream
      Applying for an emergency UK visa in South Africa
      Aug 17, 2017  |  by John Dunn
    • Three friends having breakfast
      Roommates, budget and location: Your guide to finding accommodation in the UK
      Aug 11, 2017  |  by Leanne Shrosbree
    • Group of friends having drinks
      5 ways to meet new people in London
      Aug 07, 2017  |  by Leanne Shrosbree
    • SA and UK flag
      How many South Africans were granted British citizenship last year?
      Aug 03, 2017  |  by 1st Contact
    • Puppy
      No pet left behind: Bring your furry friends with you to the UK
      Jul 28, 2017  |  by Leanne Shrosbree
    • Stoketoberfest
      Stoketoberfest is upon us
      Jul 28, 2017  |  by 1st Contact
    • heart calculator desk cash
      Stay on the right side of HMRC as a contractor
      Jul 24, 2017  |  by Kobus Van den Bergh
    • choosing worker
      How to get a job after you’ve arrived in the UK
      Jul 21, 2017  |  by Leanne Shrosbree
    • happy young couple
      Don’t do the long distance thing, extend your UK spouse visa
      Jul 20, 2017  |  by John Dunn
    • Bulldozer through maze
      How to open a UK bank account as an Australian
      Jul 20, 2017  |  by Sam Hopwood
     
     

    Do you like cookies? We do, read why.