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We are a firm of accountants who have unfortunately made a mistake on a client’s self-assessment tax return for 2010/11. We don’t make a habit of this.
The result was that on 15 February 2012 HMRC issued a repayment for £41 500 which was banked by the client. We became aware of the refund and advised the client to repay an amount to HMRC and this was paid back on 4 April 2012.
As the refund of income tax was made on 15 February 2012 HMRC have charged late payment interest back to January and July 2011 in the sum of just under £900. The original payments on account due (based on the 2009/10 tax return) were made correctly in January and July 2011.
According to the legislation we have read HMRC have adopted the correct treatment. However with effectively a £900 interest charge for...
