https://taxagents.blog.gov.uk/2017/09/28/2016-17-self-assessment-sa-tax-calculator-fix-is-due-to-be-in-place-monday-23-october-2017-tax-agent-blog/

2016-17 Self Assessment (SA) tax calculator: fix is due to be in place Monday 23 October 2017 - Tax agent blog

You may be aware that changes to the SA tax calculation were recently implemented to accommodate the order of reliefs and allowances. Unfortunately some issues were picked up that we were unable to fix before 6 April 2017. This blog details when the fix is due, which Exclusions will remain and advice for agents on what to do if they’re unable to file online.

Our in-year fix date for the 2016-17 calculator is due to be in place by Monday 23 October 2017 (this will correct Exclusions 48 to 56 and 58 to 59, which cover the majority of cases). If there are any changes to this date, we will notify you at the earliest opportunity.

We have considered the options for Exclusion 60 and are endorsing the following workaround - where there is no overall gain or loss to enter in:

  • both “Gains in the year, before losses” (box 6) and “Losses in the year” (box 7) on the Capital Gains section it is permissible for the software to support the entry‎ of £0.01 in “Losses in the year” (box 7)
  • both “Gains in the year, before losses” (box 17) and “Losses in the year” (box 19) on the Capital Gains section it is permissible for the software to support the entry‎ of £0.01 in “Losses in the year” (box 19)
  • both “Gains in the year, before losses” (box 26) and “Losses in the year” (box 27) on the Capital Gains section it is permissible for the software to support the entry‎ of £0.01 in “Losses in the year” (box 27) 
  • both “Gains in the year, before losses” (box 34) and “Losses in the year” (box 35) on the Capital Gains section it is permissible for the software to support the entry‎ of £0.01 in “Losses in the year” (box 35).

If this workaround is followed, no additional tax will be due as this figure will be regarded as zero in the tax calculation.  We have also updated HMRC’s Self Assessment online service to allow this workaround to be used.

Please note software developers have been notified of our intended fix date and this workaround.

Additional help

If you are an agent and unable to file a clients’ SA tax return online please use the form at: Self Assessment: reasonable excuse for not filing return online. This form is specifically for agents who have had a problem submitting an online tax return after the paper deadline of 31 October. Agents should send this form with the paper tax return to avoid a penalty.

For more information about each Exclusion please see: Self Assessment Individual Exclusions for online filing - 2016/17; this includes further information for filing paper returns and claiming reasonable excuse.

We will automate the recovery of both online and paper cases where a return has been filed but shows the incorrect tax position. This recovery will include an SA302 tax calculation and a letter to the customer to advise them of the correction.

Until the fix is in place your choices are:

  • await the implementation of the fix on 23 October 2017 and then file online
  • continue to file online if your current software allows you to do so
  • file on paper (preferably with a covering letter identifying the exclusion).

Thank you for your continued support.

Leave a comment

We only ask for your email address so we know you're a real person