When overpayments are made in respect of PAYE for a specific year, HMRC have a practice of leaving such overpayments on record in a specific year and not informing the client of the same, whether the error being on the part of HMRM or the client.

HMRC will not infrom the client of such overpayments and take the view it is for the client to be aware of such overpayments and make the appropriate claim for repayment. In the event no claim is made for a repayment, it is normally lost in the HMRC achives. A similar situation may arise in personal and corporation tax when assessments are made by HRMC, vigilance is therefore necessary.

As reported in the national press, when a company or individual is under enquiry by HMRC the officer involved is under incentives to complete the enquiry to the advantage of HMRC. There have been incidents of such inspectors failing to ask appropriate question or to properly understand evidence disclosed from records.

HMRC have in recent times increased the amount of enquiries they undertake each year and hence there is every chance you or your business may come under enquiry simply from an a change of profit highlighted in accounts or a variety of other innocent reasons. We pride ourselves in understanding such problems and helping our clients resolve them quickly.