HMRC’s self-assessment software for 2016/17 contains a specification error affecting the dividend and personal savings allowances introduced in April 2016. It affects taxpayers who file online using HMRC’s software or third-party packages.
HMRC’s self-assessment software for 2016/17 contains a specification error affecting the dividend and personal savings allowances introduced in April 2016. It affects taxpayers who file online using HMRC’s software or third-party packages.
HMRC is working to fix the problem and has added the following two situations to its list of self-assessment individual exclusions for online filing for 2016/17:
Where the customer has non-savings income less than the personal allowance and savings starting rate (SSR) (£16,000) plus savings income not covered by any personal savings allowance they are entitled to, the SSR of £5,000 is not being given.
Some customers who have non- savings/savings/dividend income and their income exceeds the basic rate band (BRB) the calculator is incorrectly reducing the higher rate band by the £5,000 dividend allowance rather than by the amount of the allowance not used in the BRB.’
In each circumstance, HMRC says taxpayers affected should submit a paper return so they do not overpay tax. Returns filed after 31 October should include a ‘reasonable excuse’ claim citing the exclusions.
An HMRC spokesperson said: ‘No tax has been wrongly paid or assessed. A very small percentage of self-assessment taxpayers who have an unusual combination of income types currently have to use paper tax returns.’
For details of all 2016/17 self-assessment individual exclusions for online filing, see http://bit.ly/2oKIinW.
HMRC’s self-assessment software for 2016/17 contains a specification error affecting the dividend and personal savings allowances introduced in April 2016. It affects taxpayers who file online using HMRC’s software or third-party packages.
HMRC’s self-assessment software for 2016/17 contains a specification error affecting the dividend and personal savings allowances introduced in April 2016. It affects taxpayers who file online using HMRC’s software or third-party packages.
HMRC is working to fix the problem and has added the following two situations to its list of self-assessment individual exclusions for online filing for 2016/17:
Where the customer has non-savings income less than the personal allowance and savings starting rate (SSR) (£16,000) plus savings income not covered by any personal savings allowance they are entitled to, the SSR of £5,000 is not being given.
Some customers who have non- savings/savings/dividend income and their income exceeds the basic rate band (BRB) the calculator is incorrectly reducing the higher rate band by the £5,000 dividend allowance rather than by the amount of the allowance not used in the BRB.’
In each circumstance, HMRC says taxpayers affected should submit a paper return so they do not overpay tax. Returns filed after 31 October should include a ‘reasonable excuse’ claim citing the exclusions.
An HMRC spokesperson said: ‘No tax has been wrongly paid or assessed. A very small percentage of self-assessment taxpayers who have an unusual combination of income types currently have to use paper tax returns.’
For details of all 2016/17 self-assessment individual exclusions for online filing, see http://bit.ly/2oKIinW.
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