HMRC Is Chasing Incorrect Debts – What UK Business Owners Need to Know
At Total Accounting Kent, we’ve noticed a sharp increase in clients being wrongly pursued by HMRC for debts that have already been paid or resolved. This worrying trend is affecting otherwise well-organised businesses and could pose a serious risk to financial stability.
Whether it’s outdated balances reappearing, cancelled cheques, or sudden RTI penalties, it’s clear that HMRC’s enforcement activity is becoming more aggressive – and in some cases, inaccurate.
What’s Going Wrong – Real Client Cases
Here are just a few examples we’ve seen recently that highlight the scope of the issue:
1. RTI Penalties Are Suddenly Being Enforced
Fines for late RTI (Real Time Information) submissions have always existed in theory — but in practice, they’ve rarely been enforced. That’s changed.
This month, we’ve seen clients receive penalties for even minor delays. If you’re submitting RTIs late, you’re no longer likely to get away with it. The message is clear: file on time or face the consequences.
2. Old Corporation Tax Balances Reappearing
One client was shocked to find a Corporation Tax bill — already paid and resolved over a year ago — suddenly appear again on their HMRC account, complete with interest charges.
No warning, no explanation, just a demand for payment. It took considerable effort to get HMRC to acknowledge the error.
3. Payment Plans Sent to Debt Collectors
We’ve also seen clients with agreed payment plans, who were paying on time and in full, suddenly receive threatening letters from debt collection agencies.
HMRC’s systems are clearly misfiring — and businesses are being caught in the crossfire.
4. HMRC Cancelling VAT Cheques Mid-Process
In one extreme case, a client was banking a VAT repayment cheque when HMRC cancelled it in real-time, without notifying the client or explaining why.
This left the business not only short of expected cashflow, but also facing unnecessary bank charges and delays.
Why This Is Happening
Let’s be honest — HMRC is under pressure. The tax gap, public spending, and pandemic-related deficits have left a massive hole to fill. As a result, enforcement has intensified — but unfortunately, it’s often inaccurate or unjustified.
What You Should Do
Here’s our advice to all business owners and directors:
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Check your HMRC account regularly – don’t assume everything’s fine just because you’ve paid what you owe.
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Act fast on any letters or penalties – even if you think they’re wrong.
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Keep records of payments and correspondence – these are your best defence.
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Speak to us immediately if anything doesn’t look right – don’t try to tackle HMRC alone.
At Total Accounting Kent, we’re here to help you stay in control, push back when needed, and keep your business protected from unnecessary disruption.
Final Thought
We’re used to helping our clients navigate complexity, but even we’re surprised by how unpredictable and erratic HMRC’s behaviour has become. Now more than ever, it pays to have experienced professionals on your side.
If you’re concerned about your own HMRC account, get in touch. Let’s make sure your business stays one step ahead.