We submitted a client's 2017 SA tax return on the 31/1/18 - and advised the client to pay the tax etc.
Client always settled his liability based on statements issued by HMRC
HMRC did not process the return so the liability and subsequent payment on account adjustments never pushed through onto his statement so he never paid the liability.
This came to our attention last October as the client was applying for a mortgage and needed the SA302's - this was showing as zero due to the return for that year not being processed so we chased HMRC. They then processed the return some 4 weeks later and straight away applied late payment penalties etc.
We succesfully appealed against the penalties on the basis of the late processing of the return and HMRC have since cancelled them.
I'd be interested to know other practitioners thoughts on this as they are now chasing him quite hard regarding the outstanding tax which to be fair is causing him some difficulty as he now has 2 years liabilities to settle?