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Tax Refund

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I did a tax return for my client back in June and there was a small repayment due (first year CIS).  I completed the repayment section on Taxfiler but a few weeks later client was asking where his refund was. I checked online and it said repayment available so I filled out the request to get it paid to the client.  Last week I was going through my SA list and noticed client is still showing repayment available on his tax account, checked with client and he hadn't received payment so I made the request again.  Just checked this afternooon and repayment still showing as available.  I've spoken to agent helpline and apparently there are type 4 or class 4 omissions (1) which is why the refund hasn't been issued.  I asked what that was and he seemed to think it was historic fines that have been left on file but the repayment request has triggered an alert and it's likely the repayment won't be issued. He had to raise an electronic form to send to that department.

Has anyone else heard of this as it is certainly new to me and I'm also annoyed that the client or myself hadn't been warned that this was the case.  It makes me look a prat telling him the repayment is on it's way when it wasn't.

(1) Nothing to do with National Insurance apparently 

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By Not Anonymous
28th Oct 2019 19:52

I suspect that your reference to "omissions" should actually be "remissions".

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By whitevanman
28th Oct 2019 22:32

The HMRC Debt Management and Banking manual will not actually tell you much (the content is generally witheld) but what you can conclude is that Type 4 remissions are made when small amounts are outstanding but are not immediately pursued (presumably because the amount renders such action not worthwhile). Clearly however, if a subsequent overpayment arises, that will be set-off firstly against such debts.

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By legerman
29th Oct 2019 11:46

Thank you for the replies, much appreciated.

He must have said remissions but it definitely sounded like omissions.

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