Reworking of 2016/2017 Tax Returns

HMRC have confirmed that from 19th November 2018 they will be reviewing up to 30,000 Self- Assessment returns for 2016-17 filed online where they consider that there is a risk that their tax calculator has incorrectly computed the individual’s tax liability.

The 2016-17 self-assessment season was challenging for many agents due to the significant increase in the number of returns which were subject to an exclusion. An exclusion applies when HMRC’s tax calculator will not compute the correct tax liability. For some exclusions it is not possible to file online as HMRC’s system will not accept the return, for others it was possible to file online but the system would not calculate the tax liability correctly from the information on the return.

HMRC are looking to begin the process of reworking computations on 19th November 2018. Where the tax position has changed, the individual will receive a new SA302 calculation. If any additional tax is due, the individual will have 28 days to pay before interest and late payment penalties apply.

Once an individual’s return has been reworked, it is important to note that any further amendments to the return must be submitted on paper, and are not filed electronically. 

HMRC has taken the decision not to send copies of the amended SA302 to the individual’s agent, therefore please forward this calculation to us if you are to receive one.

HMRC are expecting that it will only be necessary to actually amend about half of the 30,000 returns that they have identified for review. On this basis, the amendments should take around a week to process.

For further information, please contact Rebecca Potton.