I carelessly failed to submit a tax return for a client before 30th December which meant we missed the deadline for the client to choose to pay his tax for 14/15 of £1200 via his tax code for 16/17 (he has employment as well as self employment income).
Worse still of course he also has to pay 600 on account in January 16 and July 16.
My client isn't very happy and whilst I have explained he won't actually be paying any extra tax obviously he is having to find lump sums he wasn't expecting to.
I have spoken with HMRC and they categorically refuse to amend his tax code in this situation and are basically saying its tough luck. I have pleaded that the client will struggle to pay the January and July lump sums but HMRC are not sympathetic.
I feel largely to blame for this and will meet the cost of any penalties and interest charges the client suffers.
Has anyone else had this situation but managed to get round it or get HMRC to be more understanding?
Why do they set this December 30th deadline rather than just using the 31st January deadline?
The other frustrating thing is that out Tax Return software doesn't reject tax returns submitted after 30th December which to make this election to pay via the Tax Code. So the first I hear about the error is from a very irate client who has had a tax demand.