16 new online tax return exclusions announced by HMRC

HMRC has announced additions to the list of those who will not have to file their tax return through the online system.

These significant additions are effective for the tax year 2016/17, and are the result of problems for those uploading returns where the individual is entitled to a mixture of personal allowance, dividend allowance and savings allowance.

The 16 additions added in April bring the total list to 33 live exclusions.

A shortlist of those who will be affected published on ICAEW can be found below:

• The taxpayers that could be affected include those with total income made up of savings and non-savings income over £32,000 of which the non-savings income is between £11,000 and £16,000, and those with non-dividend income of £27,000 to £32,000 plus dividends which take their total income to over £145,000

• Where an exclusion applies, it is necessary to file a paper return but the deadline for the paper return is effectively extended to 31 January

• HMRC expects to rectify the issue so that these particular exclusions can be removed for 2017/18 and subsequent years.

You can view the full list of exclusions here.

The Chartered Institute of Taxation (CIOT) received the following statement from HMRC regarding online filing issues:

“HMRC is working hard to ensure that no tax is incorrectly assessed for a very small number of self-assessment customers, who have a very unusual combination of income types. HMRC is committed to helping customers file online for 2016/17 and is discussing how best to achieve this with agent representatives and software providers. Further information will be provided, as soon as it becomes available.”

While anyone who falls within these exclusions may file a paper return, the CIOT has advised against this. Instead, it suggests waiting to hear for updates of an electronic fix from HMRC, which are expected within the next few weeks.

Want to find out if you’re entitled to tax return exclusions? Get in touch with the team at The Accountancy Partnership for help with your accounts. If you’re a member of The Accountancy Partnership, you can get Pandle Pro for free!


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