VAT Error

[BennyMarlow]

Hello UKBF,

I've made an error when registering a company for VAT and entered the wrong bank account details. The first two VAT returns were repayments, which HMRC paid through to the details supplied (i.e. not the correct account).

I accept that this is my mistake but when contacting HMRC for help I was bascially told: 'we've repaid the VAT, tough luck if you made a mistake'.

I know that in the registration process they insist that the name of the bank account must match the name of the business to prevent fraud; however it seems that you can enter any bank details and they will pay to any account regardless of the name.

I've written to HMRC to request that they recall the payment and rectifiy the situation, however received now reponse.Has anyone dealt with a similar situation or got any advice on where to go next?

Many Thanks,
Ben

[Zeno]

Do you know whose account the payments have been made to or did you make a mistake with the digits?

[Jenni384]

Hi Benny

Sorry to hear of your difficulties. It's an interesting one (from an objective standpoint!). I don't know the definitive answer, however...

If you know the bank details you gave on the form, presumably you know to which bank the VAT refunds were paid, even if you don't know whose account it's gone to. Therefore I would contact the bank as well as HMRC to explain what has happened.

I would also take a hard line with HMRC. Yes they used the bank details supplied but you'd think their bank's computer would flag up the name was wrong.

I think at some point the bank, the account owner and HMRC must all agree to move the money to you, but how you get this done I'm not sure.

Good luck.

[elainec100@cheapaccounting]

I would take this down the HMRC complaints procedure. Yes an error has occurred but they are doing little to help sort it.

So you can complain about their service to you.

Read here:

http://www.hmrc.gov.uk/complaints-appeals/how-to-complain.htm

I would advise putting it in writing to the VAT office, register the letter. Make it as a complaint and advise them that you will go to the Adjudicator if not resolved.