HMRC Clarifies £100 Charge for Barclays Customers Affected by Recent Outage

Thousands of Barclays customers faced a frustrating disruption last week when a technical outage left them unable to access their accounts or make payments. The outage, which lasted for nearly 24 hours, coincided with the HM Revenue and Customs (HMRC) deadline for self-assessment tax returns, raising concerns that affected customers could be penalized for missing the cut-off.

However, HMRC has now clarified its stance, assuring taxpayers that they will not face the standard £100 late-filing penalty if the outage prevented them from submitting their returns on time.

Barclays Outage Disrupts Payments

The banking disruption began on Friday, February 2, and continued into the following day, locking customers out of online and mobile banking services. Account holders were unable to check balances, transfer money, or make crucial payments, including tax payments due that same day.

Barclays has since apologized for the disruption, stating that the issue was caused by a technical fault rather than a cyber-attack. A spokesperson for the bank confirmed that all services were restored on February 3 and that the bank is working to address outstanding payment issues for affected customers.

HMRC’s Response: No Automatic £100 Fine

Following the outage, HMRC issued a statement reassuring taxpayers that they will not automatically be fined for missing the January 31 deadline due to banking problems. The tax authority said that those affected should file their self-assessment tax return as soon as possible and explain their situation if they receive a penalty notice.

According to HMRC, customers who experienced banking issues preventing them from making payments on time should contact HMRC directly via their official website or helpline. If they are issued a late-filing penalty, they can appeal it by providing evidence of the banking outage.

What Barclays Customers Should Do?

For those who were affected by the outage, Barclays has advised the following steps:

• Check account transactions to ensure payments that were delayed due to the outage have now been processed.
• If payments are missing, customers should contact Barclays customer service through the official website or phone helpline.
• If a late-filing penalty is received from HMRC, customers should provide proof of their inability to pay due to the banking issue and file an appeal through HMRC’s Self Assessment portal.

Barclays has also extended its customer service hours to help those who continue to experience issues with delayed transactions. While the bank has committed to processing payments as quickly as possible, some customers have reported that payments are still missing.

Compensation for Affected Customers?

While Barclays has acknowledged the inconvenience caused, it has not confirmed whether affected customers will receive compensation. Under UK banking regulations, customers may be entitled to compensation if they have suffered financial loss due to service outages.

The Financial Ombudsman Service advises customers to first raise their complaints directly with Barclays. If they are unsatisfied with the response, they can escalate their complaints through the Financial Ombudsman Service.

Wider Impact of Banking Outages

This incident highlights the broader risks associated with digital banking reliance. Over the past year, several UK banks have faced technical issues that have disrupted services. Such outages can be particularly disruptive when they coincide with important financial deadlines, such as HMRC’s tax submission date.

Financial experts advise customers to always keep backup payment options available, such as setting up tax payments in advance or using alternative banks for essential transactions.

Conclusion

For Barclays customers caught in this unfortunate situation, the reassurance from HMRC will come as a relief. While technical glitches are sometimes unavoidable, banks must ensure robust systems are in place to prevent such disruptions, particularly around critical financial deadlines.

HMRC’s decision to waive the automatic £100 penalty for those affected is a positive step, but taxpayers should still ensure their returns are filed promptly to avoid further complications. Those who believe they have suffered financial loss due to the outage should consider lodging a complaint with Barclays or seeking redress through the Financial Ombudsman Service.

For the latest updates, Barclays customers can visit the Barclays Service Status Page or reach out to the bank’s customer support.

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