Businesses across the UK and beyond have been unable to pay HM Revenue & Customs (HMRC) millions of pounds in corporation tax and VAT – after HMRC left them with the incorrect bank details to make their payments.
The news comes after HMRC changed its bank details in February for firms which pay using International Bank Account Number (IBAN) – and failed to inform many businesses of the changes.
Upon implementing the change, HMRC issued an employer bulletin claiming that all affected firms would be notified.
But it has recently emerged that, in many cases, firms were left completely in the dark.
The Daily Telegraph has reported that a number of substantial payments from nationwide firms have ‘bounced’ or ‘remain uncollected’ – with many businesses facing late payment penalties and general confusion regarding how to settle to their debts.
An anonymous senior tax executive of a major multinational corporation told reporters: “Our payment is now nearly a month overdue and we have still not received instruction from HMRC on how to pay. The way they have handled it is so shambolic, I would not be surprised if this is a much wider issue.”
Businesses facing similar issues are advised to contact the relevant experts for advice.