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TaxCalc Blog

News and events from TaxCalc

Alyson Vahidy (9)
12 September 2017

HMRC 2016/17 calculation errors and Exclusions - Update

EVERYONE MAKES MISTAKES – EVEN HMRC!

But don’t worry. The fix is on its way

You may already know that HMRC has made a number of changes to the Personal Savings and Dividend Tax Reform, which became effective from 6th April this year. You’ll also probably know by now that errors were made in the calculation of tax liabilities.

It’s meant that those affected are unable to electronically submit Tax Returns (if an error registers it’s called an Exclusion). Instead they have to file a paper Return, providing at the same time a ‘reasonable excuse’ form. This has proven highly inconvenient and is a potential problem that’s common to users of all brands of tax software.

But fear no more. At TaxCalc we’ve been working closely with HMRC to remedy the situation quickly.

How TaxCalc can help right now

At the moment, the current version of TaxCalc will provide the correct calculations for as many Returns as possible, and will notify you of any Exclusions. So at the very least you will be able to process the maximum number of Returns in spite of the issue.

In the meantime

HMRC has now provided us with an updated and final version of the 2016/17 tax calculations and have assured us that many of the calculation issues have been corrected. HMRC has agreed to incorporate the corrected calculations into their live online filing service.

These changes will be incorporated across HMRC’s systems on 23 October 2017 (the date may change, so watch this space for any further updates).

The TaxCalc fix. Coming very soon

Look out for a new update of TaxCalc in the coming weeks. It’ll be ready to install in plenty of time before HMRC implements the required changes.

When the update goes live, you’ll see an alert in the notifications panel within your TaxCalc software. Simply follow the onscreen instructions and you’ll be ready for action.

Once you’ve installed the update, you’ll be able to submit returns electronically as normal. When HMRC’s changes come into effect, you’ll be able to submit any affected returns too.

Returns already submitted to HMRC

HMRC has confirmed that all Returns filed so far (up to and including the planned release date of 23 October), will be reviewed and a corrected SA302 calculation summary will be sent out to those affected by the current incorrect version of the calculations.

For more detailed information on the current calculation errors, please see our Knowledge Base article.

What are your thoughts?

We’ll always do our best to keep you ahead of the game, no matter what occurs. Find out more about the latest innovations from TaxCalc:

CloudConnect 

Company Secretarial

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VEET19 (4 years ago)

Any word on this update yet, I would rather file digital?

Alyson Vahidy (4 years ago)

We released a version of the software in October incorporating the latest calculations provided to us by HMRC. HMRC incorporated these latest changes into their Online Service on 23 October.

Although many of the original issues were resolved by the latest calculations there are however, a number of new Exclusions have been issued by HMRC after the release of the latest update of the Taxcalc software.

This means that some Returns may not produce the correct calculation result because it may fall into one of the latest Exclusions. It will file electronically as the calculations will match HMRC. I hope this helps! If you need further clarification please don't hesitate to contact us.
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