2016-17 HMRC Exclusion Errors

HMRC have confirmed that from 19 November 2018 they will be reviewing and reworking up to 30,000 self-assessment returns for the tax year 2016/17 which were filed online.

This is because HMRC believe that there is a risk that their tax calculator has incorrectly computed the tax liabilities for tens of thousands of individuals.

Nicola Roby, Director at CHW Small Business Accounting in Bolton briefly explains the issue and encourages you to get in touch if you believe you may be affected.

The error only affects electronically filed returns, not those which have been filed on paper. However, less than 10% of returns are filed on paper, so the majority of returns are affected.

If you are affected, you will shortly receive a revised SA302 calculation, along with advice on what you need to do. HMRC have said that all those affected will be contacted by the end of November 2018 so they have given themselves a very short timeframe.

Penalties will not be applied in these cases and interest will not be charged on any new amounts which are due, providing they are paid within 28 days of the date on the SA302 Advice note. We believe this is only reasonable given that a problem at HMRC’s end has caused the problem.

What is worrying is that HMRC will not be sending the revised tax calculation to us as your accountant.

Please forward any communication you receive from HMRC to us so that we can review any revised SA302 carefully. HMRC did not get their calculations right the first time and so we shouldn’t trust they will get it right at the second attempt.


This article is for general guidance only. It provides an outline, and may not include points which are important to your situation. You should not depend on this blog without taking advice based on the full facts of your case. The information given was correct at the time of publication.

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