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    • chrismac1
    • By chrismac1 27th Mar 17, 9:40 AM
    • 2,493Posts
    • 1,478Thanks
    Warning - HMRC have mucked up 2016-17 self-assessment
    • #1
    • 27th Mar 17, 9:40 AM
    Warning - HMRC have mucked up 2016-17 self-assessment 27th Mar 17 at 9:40 AM
    Despite having had a year to get this right, HMRC's own database software contains errors for 2016-17. In turn this means all commercial software replicates the errors, because in order to get the returns to file electronically suppliers must pass the HMRC flags including those which have been mucked up by HMRC.

    The problems stem from the interaction between the separate allowances for savings and dividends, the personal allowance, and the additional rate of tax on income over £150,000. The two groups of taxpayers affected appear to be:
    1. 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
    2. those with non-dividend income of £27,000 to £32,000 plus dividends which take their total income to more than £145,000
    Individual taxpayers (not trustees or personal representatives) are entitled to the dividend allowance of £5,000, which taxes the first £5,000 of dividends at 0%, within the tax band the dividends fall into. Dividends are taxed as the highest slice of income.

    In both of the above scenarios the tax due per HMRC will be £1,000 more than is legally due. What a surprise they screwed it up in that direction!
    Hideous Muddles from Right Charlies
Page 2
    • Pennywise
    • By Pennywise 10th Jul 17, 2:32 PM
    • 10,036 Posts
    • 18,609 Thanks
    I wonder if these issues are having a knock-on effect on third-party integrations - still no sign of 2016/17 updates to FreeAgent to enable tax return submission. FreeAgent could just be being slow I guess - anyone else noticed delays with any other providers (Kashflow, Xero, Quickbooks etc.) that support tax returns?
    Originally posted by TheCyclingProgrammer
    Freeagent were slow last year too.
    • Sprintblue
    • By Sprintblue 11th Jul 17, 5:03 PM
    • 126 Posts
    • 51 Thanks
    Per Chrismac1, I can confirm I have had this exact issue. I was told it would be fixed in a few weeks.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam No idea why you removed it as it was something I learnt from this site - bizarre
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