Tax refund less next years payment on account!!

Poodle
Poodle Registered Posts: 711 Epic contributor 🐘
Hi

I filed one of my clients tax returns a few weeks ago and they were due a refund of tax.

The letter confirming the refund arrived today I was astonished to see that HMR&C have deducted the 1st Payment on account due on the 31st January from the refund prior to payment. This is a good client with no bad history with payments.

I telephoned to ask why this had happened and the operator said that this was normal HMR&C practice.

I asked what legislation supported this practice since it made me look stupid as an agent advising my clients and I needed to know what was correct. This resulted in her back tracking and arranging for the extra money to be repaid.

Astounding especially in light of the business payment support set up.

Poodle

Comments

  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
    I have had this many times before, even as far back as tax returns submitted in September. Really frustrating.
  • Dean
    Dean Registered Posts: 646 Epic contributor 🐘
    Poodle wrote: »
    Astounding especially in light of the business payment support set up.

    Poodle, you should know by know, it's give with one and take with the other! :001_smile:

    Regards

    Dean
  • Poodle
    Poodle Registered Posts: 711 Epic contributor 🐘
    I have had this many times before, even as far back as tax returns submitted in September. Really frustrating.

    Dean

    So do you phone each time or do you leave as is?

    Poodle
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
    This time of year I usually leave it unless the client really wants to kick up a fuss.

    For those ones back in September/October I ring them up and give them an ear-bashing!
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