Repaid repayment

My client’s 2007 tax return was prepared by a reputable firm of London accountants but may not have been actually sent to HMRC.

However the tax due of approximately £4 000 (there were no payments on account due) was paid prior to the deadline of 31 January 2008.

I prepared and submitted her 2008 tax return in January 2009. Much to my surprise a month later the client received a tax repayment of approximately £4 000. It was only when a determination for the 2007 tax return was sent to me that I realised something was amiss.

It seems that the 2007 tax return was never received by HMRC. I obtained a copy had it signed and submitted to the department and the tax was then repaid to HMRC.

I assumed that this would be the end of the matter but the client then received...