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HMRC publish last minute Exclusions cases for Self Assessment 2016-17

HMRC have published some last minute Exclusion cases for Individuals Self Assessment tax returns for year 2016-17.

Details of the Exclusion (version 9.0) are published on this FAQ page HMRC SA100 Self Assessment Specials and Exclusions List.

When using Andica SA software, the software may provide advisory messages where necessary to simply provide information about HMRC's validations and what action, if any, was suggested by HMRC at that time. This is for customers to read and action appropriately. In most cases the software will let customers decide if you wish to continue and submit the returns online. It is then up to HMRC to validate submissions and returns.

Along with the Exclusion cases, HMRC have provided the following advice:

All Self Assessment customers need to file their 2016-17 return, pay their balance for 2016-17 and make their first payment for 2017-18 by 31 January 2018.

As you know each year there are a small number of customers who are affected by exclusions and who are therefore unable to file online or get an accurate Self Assessment income tax liability calculation for 2016-17. Our forecasts suggests that exclusions for 2016-17 will only impact a very small proportion of SA customers (a fraction of 1%)

In this instance customers should:

  • file their Self Assessment by paper return, along with a completed reasonable excuse claim
  • make a reasonable effort to estimate their income tax liability for 2016-17 based on the information they have
  • pay their estimated balance for 2016-17 Self Assessment and make their first payment for 2017-18 by 31st January 2018

Should their income tax liability calculation for 2016-17 be too low, or the deadline of 31 January be missed because of an exclusion, HMRC will not apply late filing, late payment penalties and/or interest. Where we have been unable to stop the automatic issue of these we will accept being affected by an exclusion as a reasonable excuse and the penalties will be withdrawn. From February 2018 we will contact those customers who have needed to estimate their balance payment to confirm their actual income tax liability.

Where a customer is uncertain if their circumstances match an exclusion and their software allows successful online submission, they should:

  • still file their Self Assessment return online
  • pay their estimated balance for 2016-17 Self Assessment and make their first payment for 2017-18 by 31st January 2018

HMRC will subsequently:

  • identify any cases filed online where the calculation is incorrect
  • make any required correction to the income tax liability calculation for 2016-17 and 2017-18 payment on account
  • inform the customer of the correct income tax liability calculation for 2016-17 and any revision to 2017-18 payment on account
  • advise when the revised amounts need to be paid
  • inform customers that they will not have to pay late payment penalties and/or interest attributable to any additional amount arising from the correction if it is paid before the revised due date

Version 9.0 of Exclusions for 2016-17 provides all the known exclusions to date. Please note that this is for guidance only to give certainty and advise customers if they fall under an exclusion. As mentioned above, customers are advised to file online and HMRC will make the required correction to their income tax liability calculation for 2016-17 and 2017-18 payment on account.

For further information please speak to your tax advisor, or use our SA110 notes and SA150 How to fill in your tax return. Customers can also contact HMRC if they receive any penalties or accrue interest due to exclusions.

Disclaimer: We cannot advise on how you should complete your tax returns or how the taxes are calculated. Information provided here is given without any obligations and we will not accept any claims or liabilities for any damages as a result of you relying on the information given here, if in doubt you must consult the HMRC Online Services Helpdesk on 0300 200 3600 or a professional tax advisor.