Andica News

Easy to use yet comprehensive business software

Self Assessment 2018-19 - Tax returns impacted by Exclusions

10 January 2020

HMRC have provided some information to help you, our customers, should be impacted by any Exclusion. Information here relates specifically to 2018-19. There are no changes to the advice HMRC provided for 2017-18 or earlier tax years.

HMRC regularly publish Specials and Exclusions List that we have published in the FAQ page for each relevant tax returns type.

All Self Assessment customers need to file their 2018-19 return, make a balancing payment for 2018-19 and their first payment on account for 2019-20 by 31 January 2020 (if appropriate).

HMRC are aware that if a customer is affected by any exclusion, they won't be able to file online or get an accurate self-assessment income tax liability calculation for 2018-19.

In this instance customers should:

  • File their Self Assessment by paper return, along with a completed reasonable excuse claim by 31 January 2020. It is recommended that you post these to HMRC using a Royal Mail Signed-for or similar service immediately.

    • You can either print 'Substitute forms' or 'Client copy' through the software.
    • Download, print and complete reasonable excuse claim from this HMRC web page.

  • Make a reasonable effort to estimate their income tax liability for 2018-19 based on the information they have.

    • Process all your tax return entries within the software.
  • Make an appropriate balancing payment for 2018-19 and their first payment on account for 2019-20 by 31 January 2020.

    • Make payment to HMRC based on the SA302 style tax calculation report produced by the software.

HMRC have advised, providing they have received tax return and payments by the deadline of 31 January 2020, they will not charge a late filing penalty, late payment penalty and /or interest on the estimated amounts. Where HMRC have been unable to stop the automatic issue of these, they will accept being affected by an Exclusion as a reasonable excuse and the penalties will be withdrawn.

HMRC will directly contact those customers who have needed to estimate their balancing payment to confirm their actual income tax liability. If this results in an additional amount being payable customers should pay any new amount due within 28 days of the notification to stop interest being added. As yet, HMRC do not have a date for when this contact will be made.

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

  • You should file your Self Assessment return online by 31 January 2020.

    • In most cases, Andica Software will display an Exclusion message box and allow you to continue to submit your returns with the knowledge of that exclusion.
  • Pay your estimated balance for 2018-19 Self Assessment and their first payment for 2019-20 by 31st January 2020.

HMRC will subsequently:

  • Identify any cases filed online where the calculation is incorrect.

  • Make any required correction to the income tax liability calculation for 2018-19 and 2019-20 payment on account.

  • Inform the customer of the correct income tax liability calculation for 2018-19 and any revision to 2019-20 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.

If you are using Andica software to process your personal return, you can speak with your tax adviser if you want to confirm if the exclusion affects you and how that would affect your tax liabilities. You can also use HMRC's SA110 notes and SA150 notes - How to fill in your tax return.

Customers can also contact HMRC if they receive any penalties or accrue interest in this case.

Disclaimer: 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.