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Alyson Vahidy (9)
17 January 2018

HMRC waive late filing penalties for returns affected by an Exclusion

HMRC have provided information confirming they are waiving late filing penalties or interest where the 31 January deadline is missed or payment of the correct tax is less than it should be due to the continuing errors in HMRC’s 2016/17 tax calculation.  See HMRC’s full statement below:

“All Self Assessment customers need to file their 2016-17 return, make a balancing payment for 2016-17 and their first payment for 2017-18 by 31 January 2018. (if appropriate) 

 We are aware however that if a customer is affected by an exclusion they won’t be able to file online or get an accurate self assessment income tax liability calculation for 2016-17.

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
  • make an appropriate payment for 2016-17 on their Self Assessment account and their first payment for 2017-18 by 31 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 charge late filing penalty, late payment penalty 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automatic issue of these we will accept being affected by an Exclusion as a reasonable excuse and the penalties will be withdrawn.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 balancing payment to confirm their actual income tax liability. 

For further information please ask your customers to speak to their tax advisor, or use our SA110 notes and SA150 How to fill in your tax return. Customer can also contact HMRC if they receive any penalties or accrue interest in this case.”

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

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:


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