As everyone is no doubt aware, there have been difficulties this year with the 2016/17 tax calculation. All software developers are affected as we all work from a specification supplied by HMRC.
The development team at Keytime have worked hard to deliver software updates to fix these calculation problems as they have come to light. However, we have recently become aware that there are further scenarios where the calculation gives an incorrect liability. An updated list (as of 24 January) of specials and exclusions can be found here. It is worth noting that some cases can still be filed on-line. Our advice at this late stage is to file on-line if you are able to and it may help your case at a later date if you note the problem in the additional information box on page 7 of the main tax return.
HMRC have announced that they are unable to fix any further problems with the calculation before the 31 January deadline, and realistically it would be difficult for our team to deliver any further fixes in time. HMRC have indicated that they expect less than 1% of returns to be affected, nevertheless, they have issued the following information should you find you are affected.
In this instance customers should:
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 apply late filing, late payment penalties 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automatic issue of these we will accept being affected by an exclusion as a reasonable excuse and the penalties will be withdrawn.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 balance payment to confirm their actual income tax liability.
Where a customer is uncertain if their circumstances match an exclusion and their software allows successful online submission, they should:
HMRC will subsequently: