FYI - HMRC system problems

Reduced POA's through HMRC Online Service not being reflected & NIC's

Didn't find your answer?

Just as an FYI - and it may have been reported elsewhere here & if so apologies for repeating - it would appear that if you apply to reduce POA's through the tax return all is reflected correctly in HMRC systems, but if you make a later claim for a client online using the HMRC Online Service & whilst you may have a screenshot of confirmation that the claim was accepted such claims seem to be being rejected later by the system 'because a return has been submitted'!?

It may be worth a quick check of client balances (if you have the time) where you know that you have made a later claim to reduce for 2016-17 online and a phone call to the Agent Line to run through each one and get the claim reinstated.

I also understand that problems remain re Class 2 NIC's and in some instances the adjustment to Class 4 for Class 1 NIC's. All to do with HMRCs 4 different systems failing to talk properly to each other. Roll on MTD.

Replies (4)

Please login or register to join the discussion.

Euan's picture
By Euan MacLennan
22nd Jan 2017 18:45

Again, I am not sure if this is the usual reported Class 2 NIC problem or a variation, but I submitted a SA return for a self-employed individual with profits of £10,500 for 2015/16, so no tax, but both Class 2 & 4 NIC payable. A few days later (impressively quick for HMRC), I received an (amended) tax calculation showing that the Class 2 NIC was not payable (despite the threshold being £5,965), but the Class 4 NIC (higher threshold of the much quoted £8,060) was still payable.

Thanks (0)
Replying to Euan MacLennan:
By Paul D Utherone
22nd Jan 2017 22:01

Was Class 2 showing due on the client record online in the "Information to help with your return" or did it say "Not Available". If it was N/A then that is just the standard problem of the system automatically overriding the return despite everything.

I had an odd one recently where I am sure I had checked before submitting and it showed £145.60 - unfortunately I omitted to save a screenshot which has become standard practice now with the way HMRC Online is changing stuff willynilly. Submitted and then had the client send a copy of the statement that followed which was clearly short by the Class 2. Emailed my contact and got a reply a couple of days later to say it was all there & they could not see a problem their end...and neither could I when I checked again. The ruddy system seems to have a mind of its own at times :(

Thanks (0)
Replying to Euan MacLennan:
avatar
By nogammonsinanundoubledgame
23rd Jan 2017 06:56

Had the client ever registered for class 2 NIC? I have seen a few crawl out of the woodwork where they had not.

Likewise those who cease self employment and show the cessation on their tax returns but neglect the "obvious" requirement separately to tell the 2 NIC office of the cessation.

Roll on 2018

With kind regards

Clint Westwood

Thanks (0)
avatar
By Jo Nokes
23rd Jan 2017 18:27

I've made an online claim to reduce the POAs after I had filed the return. When it didn't show up as actioned, I made a second claim, and this isn't refelcted on the website either. This has been flagged up here before, as you figured. I don't see why I have to waste time calling the helpline; I suppose when the client gets a demand for the full POA (I have warned him), I will have to do just that. Or maybe shoot off a letter, which is quicker, but will probably have no effect other than to enable client, and I, to refer to it when the debt management people get involved

Thanks (0)