HMRC shares update on IT error issuing penalties to customers’ accounts

HM Revenue and Customs (HMRC) has shared an update on an IT error that has incorrectly left some customers facing penalties on their VAT accounts.

The issue affected VAT returns submitted on December 7, 2024, preventing them from being processed and recorded on customers’ accounts – despite being filed on time.

has confirmed they are aware of the problem and are working to resolve it.

A statement on its service update page reads: ” are aware of an IT issue that has prevented a number of VAT returns submitted on 7 December 2024 from being accepted on to customers’ VAT accounts.

“If you’ve been impacted by this issue, your business tax account will show the return as due on and received on 7 December 2024, but with a penalty or penalty points applied.

“We’re currently taking action to correct the issue and complete these returns in the system.”

However, the tax body has been facing criticism on social media platform X for failing to communicate the issue with customers properly.

Tax expert Dan Neidle : “Quick update on the IT snaff which meant that last week they issued penalties to people who’d actually submitted their VAT returns on time.

‘s ‘service availability website’ says this was an IT error, but they haven’t emailed/written to affected taxpayers, and so many won’t know this.

He added: “IT errors happen. They’re inevitable. But what’s not inevitable is failing to communicate with people affected, failing to fix things promptly, and then wrongly deducting money from peoples’ bank accounts. Please do better, .”

An spokesperson told : “We’re sorry that a small number of VAT returns submitted on 7 December were not accepted on some customers’ accounts. We’re working swiftly to correct them.

“Any penalties or penalty points incorrectly applied will be removed, so customers don’t need to take any further action.”