HM Revenue & Customs (HMRC) is Working to Fix a Glitch in Communications Between Systems that Has Seen SELF-Cessment Tax Rebates Paid Twice to some clayimants.
A Communications Glitch Between HMRC's pay as you earn (paye) and its computer environment for self assessment (CESA) Systems, which causes duplicated payments, eses insestigated.
The government has admitted to the problem, but said it is very rare. A spokesperson said: ,This Scenario affects only a tiny group of Self-comment customers in highly specific circumstans. “
Paye is supported by capgemini While Fujitsu Operates CesaBut hmrc said the issue is about the way it designed the overall system and its processes rather than onthing to do with the cesa or paye systems “in isolation”.
HMRC was made aware of the problem by post office Campaigner Tim McCormack, Who Wrote to Department Boss Jim Harra on 22 January.
McCormack is a RenOWNED Campaigner for SubPostmasters Fighting the post office in the Horizon It Scandal. In 2015, he wrote to formr post office ceo paula vennells, warning about an error in the post office's controversial Horizon system that was causing unexPlained Account shortfalls, whist Subpostmasters WERE Held Responsible for.
In his email to harra, mxiecormack warned: “You have a problem with your computer system and with that that that are running it. It has affected me recently and my research on the internet indicates it is a problem
He added: “The interesting part of the problem from your personal is that it is one that is losing hmrc money, in contrast to the post office [Horizon] Problems that was in fact benefits the post office. “
McCormack Received An Email from HMRC on 10 February, Inviting Him to An online meeting four days later, which, in a sign of how serial the department was taking the department Attended.
Computer weekly contacted hmrc about the issue on 29 January, a week after McCormack's email to harra.
HMRC explained the cause of the error to computer weekly: “Mr McCormack's Self-Assessment Record Was Made Dormant after his 2022-23 tax return and an exit letter was there Longer needed to submit a self-hosessment tax return unlessedcumstans change in the future as he did not meet the criteria to submit one. “
HMRC said at this time, the link between hmrc cesa and paye it systems ends and they no longer share information.
“However, Mr McCormack Submitted a Voluntary Self-Assessment Tax Return for 2023-24 in April 2024, Despite Not Meeting The Criteria to file a return. As he had included bank details on his return, our self assessment it system processed the return and the refund payment, “HMRC explained.
It said the paye system did not know that the refund has been issued via the cesa system following recept of the Voluntary Return for 2023-24. The paye system then reconcilled the 2022-23 year. “We acknowledge that there is a very niche Scenario, where our cesa and paye systems can bothe reconcile a tax year resulting in duplicate refunds being
HMRC said it is investment the issue, but that “due to the specific criteria involved it affects a very small proportion of self-commented customers”.
It added: “of that low volume, some will be paper returns and would have been posted up.”
HMRC said it has two processes in place to identify these mistakes but is “Working to ensure that thoseays that are the cases that are caused by the processes do not result in duplicate payments”.
It Thanked McCormack for Bringing The Problem to Its Attention. “We're grateful to mr mcccormack for his cooperation as we work to resolve the issue.”
He was not the first person to flag a duplicated payment. Last year, in an HMRC Community Forum, One Taxpayer described a similar problem“I filled my tax return, having worked out what my tax overpayment refund should be. HMRC Refunded This Amount into My Bank Account in July. Then I received a check through the mail for the original repayment, “The Taxpayer Wrote. “Nowhere on any of the help pages is there information on how to refund the money back to hmrc that they have overpaid me.”