I have recently prepared a tax return, for a client with only self-employment income. The tax for the year is coming out around £2,000, which would of course normally require payments on account to be paid for the current tax year. However, the software (taxcalc) tax payment summary is only asking for the balancing payment for 2020-2021 and no further installments.
My client did recieve SEISS and also rates grants, and if I took either one of these out of the return the tax for the year would fall below the £1,000 installment threshold. Therefore I think the grants may be the reason behind no installments being due for the current year (i.e. being non-recurring), but I wanted to see if anyone else had come across this first to ensure that it isn't a system glitch.
I have had a look online but didn't come across any answers, so if anyone is able to confirm it would be much appreciated.