The January 2018 Self-Assessment Season is proving slightly more challenging for some of the accountants we speak to.
It is the first time HMRC’s Pre-Population APIs have been used fully at Self-Assessment peak time (albeit in live private beta mode) to help accountants obtain and cross-check figures held at HMRC. There are also more online filing exclusions to factor in this time for online filing.
To help accountants effectively manage the volume of returns they have to file, and navigate the nuances of this particular season, the BTCSoftware team have flagged some issues to have on your radar. We’ve also shared further helpful resources and have outlined the support our team will be offering our customers in the run-up to 31st January.
Current HMRC Gateway Technical Issues
Online Exclusions
This year a far greater number of HMRC online exclusions are preventing some individual returns being filed online via the HMRC Gateway. Here’s a helpful reminder of what they are.
Built into BTCSoftware’s Self-Assessment product (SA Solution) are automatic notifications and explanations if one of the 2016-17 Exclusions applies, and a paper return will have to be submitted. The deadline for that return is still 31 January 2018. This obviously cuts things a bit fine and, if an agent’s client is affected by an exclusion, it is recommended that they…
- file their Self-Assessment by paper return, along with a completed reasonable excuse claim.
- make a reasonable effort to estimate the client’s income tax liability for 2016-17 based on the information they have
- make an appropriate payment for 2016-17 on their Self-Assessment account and their first payment on account for 2017-18 by 31st January 2018
Should the client’s income tax liability calculation for 2016-17 be too low, or the deadline of 31 January be missed because of an exclusion, HMRC has said it will not charge a late filing penalty, late payment penalty and/or interest. Here’s what they had to say…
“Where we have been unable to stop the automatic issue of these, we will accept being affected by an Exclusion as a reasonable excuse and the penalties will be withdrawn. From February 2018 we will contact those customers who have needed to estimate their balancing payment to confirm their actual income tax liability. “
HMRC’s new pre-population API buckling under the volume
HMRC has alerted us to technical problems their pre-population API is having within the Gateway.
The API was designed to enable agents to obtain and cross-check their clients’ figures in HMRC’s new Digital Tax Accounts when submitting a return in third party software. The security measures HMRC put in place for the API included velocity checks to prevent cyber-attacks flooding and bringing down the system. It would seem the current volumes of returns calling on data via the API are causing it to issue an Internal Server/Protocol error.
HMRC has contacted all third party software developers, particularly larger ones like BTCSoftware. They have asked us to share that their current peak times for calls to the API are between 10am-12noon and 2pm-4pm.
It’s important to note that the Internal Server/Protocol error can simply be ignored. It doesn’t affect your ability to submit the return. If you have the correct filing information and aren’t relying on the cross-check to the Digital Tax Account for the figures, you can complete and submit the return. In BTCSoftware’s SA Solution, Agents can disable the API check if they wish – either for all their clients’ return submissions, or just for a specific one. At BTCSoftware our friendly support team have also been helping agents report the protocol error to HMRC.
Tax Coded Out issues
Not a software issue but we have heard of HMRC’s inspectors subsequently challenging ‘Tax Coded Out’ submissions (which had a 30 December deadline). This is for clients who want to elect to pay their Tax At Source (via their PAYE) across 12 months.
It is worth emphasising that it is sensible to challenge this challenge! It would appear there are some mixed interpretations amongst inspectors of the Taxed At Source criteria/rules. We’ve come across instances where the initial HMRC challenge has been subsequently withdrawn and the client’s submission for their tax to be coded out then accepted.
Additional Useful Tools and Insight for You
As well as our Survival Guide to the Self-Assessment Season, HMRC has also put together a Self-Assessment Special of its Agent Update newsletter. They are also running a series of their Talking Points online meetings/webinars throughout January to touch on specific Self-Assessment topics. Click on the relevant resource below for more information.
| Self-Assessment, A Survival Guide for Accountants | HMRC’s Agent Update Self-Assessment Special |
A helping hand from the BTCSoftware Support team
Throughout January our friendly support team will be on hand to help BTCSoftware customers cope with the Self-Assessment filing season.
In addition to our availability between 9:00am and 5:30pm Monday to Friday, emails to the Support Team are being monitored outside of normal working hours and all genuine emergencies will be dealt with.
On January 31st we will be monitoring emails right up to midnight, so if you do encounter a problem drop us an email to Support@BTCSoftware.co.uk and will do our best to attend to the issue.
