Self assessment balancing payment

This article is a follow-up to my article ‘Trust in the balance’ (Taxation 6 May 2021 page 20) which in turn was my take on the query ‘Self-assessment confusion’ (Taxation 4 March 2021 page 25) which had appeared in Readers’ forum.

Outline of the facts

The facts of the case can be simply stated. The taxpayer had a net tax liability for the 2018-19 tax year of £8 000. Based on her 2017-18 tax calculation she was required to make payments on account of £5 500 (on 31 January 2019 and 31 July 2019 respectively). Because of an HMRC computer error however the second payment on account was cancelled. Accordingly the taxpayer’s balancing payment payable on 31 January 2020 was due to be £2 500.

However the taxpayer submitted her tax return in mid-December 2019 and did not...