HMRC appears to have stepped up the number of repayment security checks it undertakes, judging by an influx of letters we have recently seen.
Repayment claims are checked when a risk is activated which raises HMRC’s suspicion about the validity of a claim.
Here are some of the circumstances which may trigger a security check:
- A claim is made where the taxpayer address differs from that shown on their self-assessment record.
- Previous correspondence sent to the taxpayer address has been returned undelivered by the Post Office.
- The taxpayer deceased signal is set on the self-assessment record.
- The taxpayer is insolvent.
- The repayment claim exceeds HMRC’s limits for automatic processing.
HMRC also stops repayments being made when certain signals are present on a taxpayer’s self-assessment record, such as the Budget Payment Plan or No Repayment signals. The Budget Payment Plan signal is self-explanatory, but the No Repayment signal is placed on…
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