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Advice while HMRC fixes calculator.

HMRC is working to resolve a number of issues with its self-assessment calculator with version 7 of the exclusion list recently updated. This is to reflect fixes made, new issues resulting from those fixes and updated guidance.

We had previously highlighted  the preferred exclusion 60 capital gains workaround for taxpayers who are required to fill in the capital gains section, but where there is no overall gain or loss – which is to enter the following on the SA return:

  • both ‘Gains in the year, before losses’ (box 6) and ‘Losses in the year’ (box 7) on the Capital Gains section it is permissible for the software to support the entry‎ of £0.01 in ‘Losses in the year’ (box 7)
  • both ‘Gains in the year, before losses’ (box 17) and ‘Losses in the year’ (box 19) on the Capital Gains section it is permissible for the software to support the entry‎ of £0.01 in “Losses in the year’ (box 19)
  • both ‘Gains in the year, before losses’ (box 26) and ‘Losses in the year’ (box 27) on the Capital Gains section it is permissible for the software to support the entry‎ of £0.01 in ‘Losses in the year’ (box 27)
  • both ‘Gains in the year, before losses’ (box 34) and ‘Losses in the year’ (box 35) on the Capital Gains section it is permissible for the software to support the entry‎ of £0.01 in ‘Losses in the year’ (box 35).

The workaround should result in no additional tax due as £0.01 will be regarded as zero in the tax calculation. HMRC has approved the workaround and notified software developers.

HMRC has announced it has successfully implemented exclusions 48 to 56 and 58 and 59. It has said it will put in place automated corrction for both returns filed electronically and by paper.

Although HMRC would prefer online filing, for some of the software issues highlighted in Self-Assessment Individual Exclusions for online filing – 2016/17, taxpayers have the option to revert to paper filing up to 31 January. A reasonable excuse claim should accompany the paper return when relying on this.

You can find the latest version of the exclusions on HMRC’s website