Tax returns rise from the dead
Nov 08, 2018
In a scenario worthy of a George Orwell novel, HMRC had huge issues with their computer system in 2016/17, which ironically, couldn’t cope with the complexities of its own tax system. It resulted in the rejection of a number of online tax returns which involved complex computations. As the year progressed, the number of tax returns which were excluded from online filing increased, and all these had to be filed in good old-fashioned paper format instead.
However, those organised enough to submit their tax return early in the tax year will be dismayed to learn that their return may have been accepted by HMRC’s computer before the list of exclusions was published. Their return will therefore have been processed, but could have resulted in an incorrect tax computation being issued.
Tax returns re-working
HMRC is now about to begin the unfortunate job of re-working around 30,000 tax returns affected by this sorry state of affairs. The task is scheduled to begin on 19 November 2018, and is expected to take a week. If HMRC’s review throws up any incorrect tax statements, then affected taxpayers will receive a revised tax computation. If any additional tax is owed, 28 days notice to pay will be given before late payment penalties start to apply.
Notification of amendment
Please rest assured that the vast majority of tax payers likely to be affected are those without accountants representing them, who were unaware of the list of exclusions. The PT team carefully monitored which tax returns were affected, and so we are not anticipating any amendments amongst our client base. If, however, you should receive an amended tax computation for 2016/17 (form SA302) then please inform us as soon as possible, as HMRC has thoughtfully decided not to send copies of amended forms to tax accountants. And if you have any queries or concerns about your tax return then please do get in touch and we’ll happily talk you through what’s been going on.