HMRC to issue revised tax calculations
Since the introduction of the dividend and savings allowances from the tax year 2016/17, HM Revenue & Customs (HMRC) software systems have struggled to calculate self-assessment tax liabilities correctly in certain limited circumstances and you may be affected. If you receive a tax calculation from HMRC, it is vital that you forward it to your usual WMT personal tax team contact promptly, as HMRC will not send us a copy. We will check the calculation for you and provide the necessary advice.
It is unlikely that your tax return will be affected by this issue. We use specialist independent tax return software and run a number of checks when we prepare and submit your tax return, which help ensure your tax return is correct. However, as HMRC have recently announced that from 19 November 2018 they will be reviewing and reworking self-assessment tax calculations for the year to 5 April 2017, we thought it best to warn you that HMRC may contact you.
Where HMRC consider the tax position to be different to that previously calculated, they will issue a revised tax calculation ‘SA302’ to the taxpayer but they will not notify the taxpayers agent. If any additional tax is due, the individual will have 28 days from the date of issue of the revised SA302 to pay before interest and late payment penalties will apply.
If you receive a tax calculation from HMRC please forward it to your normal WMT advisor or contact Paula Jeffs.