"A loyal reader (who runs a small business) advises me that last week he got a letter from HMRC claiming that he had missed PAYE and NIC payments for the period 6th April to 5th May 2010.
Fair enough, except that he pays these quarterly and the amounts were not yet due for that particularly quarter.
On calling HMRC using the number given on the letter he was told 'it's because of the new penalty rules, this letter has gone out to all quarterly payers'.."
It seems that there are still issues wrt HMRC chasing up payments that are not yet due.
Accountancy Age report that Alan Boby, tax partner at Ellacotts, has highlighted the same issue with one of his clients who pays PAYE and national insurance on a quarterly basis.
The client had been contacted by HMRC's debt collection division on 15 September, a month before their latest quarterly payment of around £700, which is not due until 19 October.
When Ellacotts approached HMRC on their client's behalf, they were told that demands for unpaid PAYE and national insurance for July and August 2010 had gone out and the client had been wrongly caught up in the trawl.
Boby claims that there have been other cases, which have led to HMRC issuing internal instructions to their offices informing them that demands had been made by mistake for monthly PAYE to employers who only needed to pay quarterly.
HMRC are quoted:
"HMRC does not recognise the scenario described.
We can confirm that no current PAYE debts whatsoever have been placed with
debt collection agencies."
Feel free to comment if you have received a demand for a payment not yet due to HMRC from a debt collection agency.
Tax does have to be taxing.
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