The taxman is sitting on millions of pounds in rebates with widespread delays in repayments hitting all parts of the system.
Mail on Sunday readers report holdups in repayments due under the self-assessment process, in rebates of capital taxes and allowances and in business taxes as companies struggle to reclaim overpaid corporation tax and VAT.
David Guest, who runs PPG Accountants in Dudley, West Midlands, is so fed up chasing the Revenue for overdue rebates that he is now withholding tax owed by his business until his clients are paid.
He has several clients who are owed tax rebates and some are waiting for the refunds so that they can settle outstanding bills, including money owed to PPG Accountants.
Guest says: 'Clients have been suffering through the recession and some have been slow to pay our fees. It doesn't help them when they are owed rebates but cannot get the cash. In one case, clients have been waiting for more than 14 months for a repayment. I have said to the Revenue, "When you pay the client their rebate, I will pay the PAYE and National Insurance deductions that I owe you.
'It has twice threatened me with enforcement action, but when I phone up and explain what lies behind this I've been given another two weeks grace.'
