Turkey, tax and time to submit returns

Jan 07, 2019

With Christmas now just a distant memory, it means busy tax return season for many agents with the 2017/18 self-assessment (“SA”) filing deadline just over three weeks away on 31 January 2019.  Readers are reminded that there are a number of online filing exclusions for 2017/18 which means paper returns will need to be filed by 31 January 2019. The most recent version of the filing exclusions for 2017/18 has recently been published.

According to HMRC, turkey and tax proved compelling on Christmas Day this year with over 2,600 taxpayers filing their SA return on 25 December.  However, 5,542,000 taxpayers have less than a month to complete their Self Assessment tax returns before the 31 January deadline.

The SA edition of Agent Update is also available now. This special edition contains details of all the Talking Points webinars tailored towards SA. You can also read about new HMRC YouTube videos and find out more information on the updated agent toolkits. As you prepare 2017-18 SA returns for your clients you may want to take a look at some agent toolkits that HMRC have tailored to support you in this area.

HMRC has confirmed that it will be issuing some revised self-assessment calculations (SA302s) for 2016/17. It should be noted that HMRC no longer routinely copies SA302s to agents and does not plan to do so with these revised SA302s.

HMRC has reviewed approximately 30,000 2016/17 self-assessment calculations where there is a risk that the tax liability has not been correctly calculated. These are cases where an exclusion from online filing applied but the return was nevertheless filed.

 According to HMRC, the original calculation of the tax liability for 2016/17 will be incorrect in approximately half of these cases. Where additional tax is due, the due date is 28 days from the date of the revised assessment and interest and late payment penalties will not apply if the tax is settled within this period.

It is important to note that any future amendments to tax returns in these cases must be submitted on paper and not online.