A client had a sharp decrease in his income and we reduced his payments on account. After preparing the return we discovered even this was too low and the first payment on account more than covered the tax for the year and approximately £1000 was due back ,this was claimed on the return.
Expecting a july POA the client had been transferring £100 a month to HMRC , the last was on 15th of May.
The repayment wasn't approved and querying it with HMRC they said because a payment was made in the last 30 days a repayment couldn't be issued until the 30 days have elapsed , to make sure everything clears.
Is this correct? Has this always been the case ? Seem ridiculous to me !!