Date posted: 1st Nov 2018
HMRC have announced that from 19 November 2018, they are to review around 30,000 2016/17 Tax Returns and re-work liability where they believe that their own calculator has incorrectly calculated an individual’s tax liability. HMRC believe that they will be required to amend around half the Tax Returns under review.
Where the tax position has changed, HMRC will issue a new Self-Assessment tax calculation but won’t send these to agents. Therefore, if you receive a copy of a revised tax calculation, then please forward this to us for review. If the new HMRC calculation is correct, then you will have 28 days to pay the additional tax liability before interest and late payment penalties apply.
We do not expect that many (if any) of our client’s will be affected by this review, as we use bespoke software to file Tax Returns and compute liabilities which meant that our system was calculating the correct tax liability but problems arose in the submission of the Return to HMRC as their calculator calculated a different amount, which we were able to overcome. It is therefore likely to affect many taxpayers who submitted their own 2016/17 Tax Return.
If you require any advice or assistance in relation to Self-Assessment, please contact us.