Self Assessment Glitches

The ICAEW has become aware of more errors in HMRC’s self assessment (SA) calculations and a number of other current SA issues.

All in all pretty disgraceful. Yet our "beloved" political elite don't give a monkey's, because they pay tax professionals to sort through this mess when submitting their returns!

Details as per the ICAEW:

These issues come on top of:

• A longer list of self assessment exclusions to deal with calculation issues and the first ever in-year update to SA software.
• The SA (and other) systems being unavailable between Thursday 4 and Saturday 6 January 2018. 

Error in calculation of capital gains tax affecting some trust returns

HMRC has advised us of an issue affecting a small number of electronically filed SA900 SA returns for trusts. HMRC’s systems are showing inaccurate calculations of capital gains tax in some cases. We have been advised that the problem has now been resolved and calculations shown in HMRC’s systems should now be correct for returns filed from 16 January 2018. HMRC will check and correct calculations for returns already filed.  

The 31 January payment should be based on the tax correctly calculated by commercial software.

Other errors being investigated

Members have reported some further calculation errors; these are still being investigated to check whether they are widespread.

One report concerns HMRC’s calculator not allowing the CGT annual exempt amount (and possibly any remaining basic rate band) to be wholly set against gains due at 18/28% rather than 10/20%.
Another concerns two cases where HMRC adjustments for marriage allowance reduced the liability in one case to zero and in another case to the previous value for payments on account.

HMRC pre-population service within third party software unavailable

Agents are currently unable to use the HMRC pre-population service (for employment data) within third party software. The service was disabled on 16 January 2018 while the problem is investigated.

SA statements missing and delayed

ICAEW has received many reports of statements not arriving. HMRC has confirmed that SA statements are being issued between 31 December 2017 and 8 January 2018 so clients may not receive them until the third week of January. HMRC has advised that paper SA statements will be issued before the due date for payment where returns were filed by 8 January 2018.

Payments on account not showing on statements

There has been a recurrence of the issue where payments on account (for 2017/18) do not appear on statements (paper and online). HMRC introduced a fix to correct this issue in December 2017 but it seems that this fix may have missed some cases.

It may be appropriate to advise clients who rely on HMRC statements to check that the payment on account due on 31 January 2018 is included in the sum they expect to pay.

Give us your feedback

It is extremely concerning that there are so many issues with HMRC’s SA software this year. ICAEW will pursue this poor service with HMRC. In the meantime we suggest that agents check calculations very carefully.

Tax does have to be taxing.

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