We recently submitted a client's 2019/20 tax return showing that the total liability was £2,557.50, meaning the recalculated payments on account for January and July should be £1,278.75. Our client paid £4,609.20 in January, as per the 2018/2019 SA100, but instead of refunding the full £3,3330.45. they have witheld £1,278.75 against a payment not due until the end of July.
With everything else going on, and Self Assessment taxpayers being able to defer their payments due 31st July, surely this is just wrong?
And yes, I've tried speaking to someone at HMRC - if anyone has a number that might get answered, that would be much appreciated!