Economia reports that a survey, conducted by Bloomsbury Professional, highlights a consensus amongst those taxpayers surveyed that delays by HMRC in paying tax rebates are worsening.
Martin Casimir, Bloomsbury’s managing director, is quoted:
“HMRC does not pay any interest on tax repayments which effectively gives it an incentive to drag its heels.Delays in the payments of rebates have been discussed on this site before. Therefore, as ever, I am interested in hearing the views of loyal readers.
The concern for taxpayers is that the amounts involved can be substantial, which can cause serious cashflow problems.
Businesses have been known to get into financial difficulty, or even go bust, while waiting for a tax rebate from HMRC.”
Do you agree with the survey's conclusion?
Oops, red faces all round.
As was quite correctly pointed out yesterday, by a loyal and observant reader, Martin Casimir's assertion that HMRC does not pay interest on tax repayments is wrong. HMRC (as I noted in the comments section) does in fact pay 0.5% (perversely it charges 3% for late payments).
I wrote to Martin yesterday about it, and Bloomsbury have acknowledged that they were wrong and will be asking Economia to correct their copy.
It is shameful that Economia (the professional magazine of the ICAEW) and myself (an FCA) didn't spot it when we published Martin's quotes!
So well done and thanks for pointing that out, and mea culpa on my part for being asleep yesterday!
Tax does have to be taxing.
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