13 November 2018
Following on from information reported on HMRC SA100 Self Assessment tax calculation errors for tax year 2016-17, HMRC have issued further guidance and advice as published below.
Tax payers who may have been affected by the HMRC calculation errors or have received revised tax calculation SA302 must contact HMRC directly.
Due to HMRC's errors in tax calculation specifications, inaccurate SA302 calculations were issued for 2016/17 for some Self Assessment tax-payers affected by exclusions. In all, 22 different exclusions were impacted and a recovery of these cases is planned to start on 19 November 2018. A list of the exclusions affected is published below.
HMRC have identified tax-payers affected by incorrect tax calculation specifications and these tax-payers will receive a new SA302 calculation from HMRC, together with advice on what they need to do. Tax-payers should receive the new SA302s by the end of November 2018. For this exercise HMRC will not send a copy of the new calculation to Agents, instead HMRC will ask tax-payers to inform their agent of any changes. HMRC have clarified that penalties will not be applied in these cases and interest will not be charged on any new amounts becoming payable, providing they are paid within 28 days of the date on the SA302/Advice note.
HMRC apologise if their decision to not issue a copy of the SA302 to agents will cause difficulties. The automation of identifying and correcting calculations has been challenging for them. For this bespoke exercise HMRC had financial and timescale constraints which contributed to the decision to ask tax-payers to inform their agent. HMRC say, this approach has the advantage of including agents where there is no 64-8 agent authority in place.
Tax payers who do not agree with the revised SA302 calculation can appeal to HMRC within 30 days. Further guidance is available at www.gov.uk/tax-appeals
HMRC are providing a Customer Service Message in the SA302 advising tax-payers what they need to do. Customers are advised to contact HMRC directly in the first instance.
Detailed list of HMRCs Self Assessment Individual Exclusions for online filing - 2016/17 is published on HMRC website and our FAQ.
57 - HMRC has corrected the tax calculation to include the 7.5% notional tax paid on tax-payer's UK Dividend income.
67 - HMRC has corrected the tax calculation to include the tax due on trust income.
73 - HMRC has corrected the tax calculation to include the loss relief claimed.
HMRC has reviewed the tax-payer's record, reviewing the income and how the personal allowance and/or reliefs are allocated to ensure the allocation is most beneficial to the customer
Where a customer has an accounting period covering two tax years, i.e. before 6 April 2016, any dividend income received will be due tax relief on the portion of income received up to 5 April 2016. HMRC has corrected the tax calculation to give the relief due on the apportioned income.
If the tax-payer is due to pay any income above the basic rate the Marriage Allowance transfer is invalid.
HMRC has reviewed the tax-payer's record, reviewing the income and how the personal allowance and/or reliefs are allocated to ensure the allocation is most beneficial to the customer. Where they are due to pay any tax at the higher rate, HMRC has removed the Marriage Allowance transfer.
HMRC has corrected your tax calculation to include the tax due on your Capital Gains in the year.
HMRC has reviewed tax-payer's income and re-calculated the Top slicing relief that is due.
In these cases HMRC may include a link to the guidance related to calculating TSR so that the customer/agent can check.
HMRC has reviewed tax-payer's income and re-calculated the tax due on their state pension lump sum. The whole of the State pension lump sum is taxable at the highest rate of tax at which the tax-payer is liable. The amount of the lump sum will not alter the rate the tax-payer pays. HMRC do not take into account the lump sum payment when calculating the net adjusted income.
For further information please contact HMRC directly.
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.