HMRC delays cause problems

Book a Free Consultation
Or call us on 01604 660661
HMRC delays are putting businesses at riskSmall businesses could be at risk due to delays at the tax office which have seen rebates left unpaid. With HMRC taking several months to address issues that should take weeks, taxpayers are missing out on large refunds, with this severely impacting businesses' cash flows. The Telegraph’s Harry Brennan says experts attribute the delays to the large numbers of HMRC staff working from home, with a clampdown on furlough fraud also playing a part as it means more taxpayer requests require additional verification. Myelin Verboom of Mcas says there is “a real risk these delays will end up pushing firms out of business because of the cash flow problems they are causing.” While HMRC aims to refund overpaid VAT within 30 days, Stuart Crofton of Stuart Crofton Tax says that he has client with a rebate of £50,000 that is still outstanding despite being applied for in April. Lisa Styles of Hespera warns that even simple tasks such as registering for self-assessment are taking far longer than normal, meaning newly self-employed people face being fined for late filing or tax payments next year. HMRC says it is aware there is “more to do to improve turnaround on customer correspondence”, with a spokesperson saying the tax office expects to see further improvements “as we emerge from the pandemic and continue to rebalance how we prioritise our resources.”

Follow Us