HMRC upgrade tackles 2011 iXBRL filing

HMRC’s autumnal upgrade will take place this weekend between 7am on Saturday 8 October and 6am on Tuesday the 11th.

The October overhaul has become part of the tax department’s development calendar and is when its IT providers get the computer systems ready for the new tax year. As part of the process, the old 28% Corporation Tax rate setting will be reprogrammed so that returns that show the current 26% rate will be no longer be rejected.

Numerous AccountingWEB members have flagged up the inconvenience caused by the delay. The October tax rate correction has taken place in previous years, but now that efiling is mandatory, businsses and their agents can no longer file a paper return to work around the glitch.

HMRC has published a service availabililty timetable that gives an idea of where the work will be taking place.

But AccountingWEB.co.uk member accountright struck a sceptical note in Any Answers by asking, “What do you think will not work properly when it is switched back on again?”

These episodes can be tricky, but are a necessary part of maintaining the tax department’s IT infrastructure. Word from within the department is that there won’t be too many significant changes, as any spare resources are now being directed to compliance and enforcement activities.

If you spot any undocumented changes or unexpected behaviour from HMRC’s computer systems in the next five days or so, be sure to alert the rest of the AccountingWEB community by commenting below.

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Comments

Can paper file

ireallyshouldkn... | | Permalink

I should point out an error in the above

You state that "agents can no longer file a paper return to work around the glitch"

We have filed around 20 paper returns for post 31st March period ends. I had only one rejected which has a nil value and I understand could have been filed using HMRC's software.

I did wonder if a CCAB body would be interested in putting in a FOI request as to the number of paper returns processed, and so highlight the cost to HMRC of the failure to deal with their IT in a timely manner during the spring update.

tax rate

alistairthurlow | | Permalink

Returns showing 27% will continue to be rejected as the new rate is 26%!

Can paper file... sometimes    1 thanks

fishfishyfishfish | | Permalink

Interesting to read the above comment. We too have attempted to file paper returns in respect of APEs dated after 31 March 2011, however our clients' local tax office appears much less inclined to accept them. We tend to get a "do it online in October" rejection letter. I'm still amazed how we find ourselves in a situation where we are obliged to file the returns online, yet prevented from doing so for several months each year by the apparent inadequacies of HMRC's systems.

20% ???

ralan | | Permalink

Will they be doing another update then so we can file for the 20% rate?

When will they get the clock to change for the 1 hour summer time?

Will believe it works when we have a chance to try it, will not hold my breath.

 

 

Locutus's picture

Paper returns

Locutus | | Permalink

The only situation I have come across where HMRC accepts a paper return for a post 31 March 2011 year end is when the company wants to be struck off.

All other situations have been met with the CT600 being sent back with a "please file online in October" letter.

I'm interested to know where the taxpayer stands regarding the enquiry window.  If an attempt has been made to file the return by the only means available at that time (i.e. a paper return), due to HMRC's inability to upgrade their IT systems for 7 months then surely the enquiry windows starts when the paper return is delivered.  I wonder how a Tax Tribunal would view this?

Natalie Brandweiner's picture

Apologies from AccountingWEB

Natalie Brandweiner | | Permalink

Thank you for the comments noting our error in reporting this year's Corporation Tax rate: it is 26%, not 27%.

It's almost the end of the week but good to see everyone's still on the ball! 

abelljms's picture

the dead hand of civil servants

abelljms | | Permalink

 

 

 

what is their problem with joining the real world?

the Chancellor muttered about the rate in his Spring Budget, a week later it should have been switched on.....

think about it - it SHOULD just be a little lookup table for each year that takes minutes to update. In REALITY of curse it is hard-coded, and all the onslime software has to be re-written each year to accomodate the new rate, and bands, because the change is a 'surprise'...zzzz

 

if i took 6 months to update my price lists etc...

They should only be able to charge the new rate from day their systens are updated - then funnily enough they would rush about and FIX it.

 

.

ireallyshouldkn... | | Permalink

Re paper returns - I wrote a cover letter stating it was our clients wish to finalise their affairs for the tax year in good time, and that we had prepared iXBRL files but due to their IT failings we were unable to file.  I didn't just send them in "plain" as I suspected they would get bounced. 

The bounced one was 825 Dundee.

 

Jacqui Brennan's picture

Paper filing

Jacqui Brennan | | Permalink

HMRC have published a guide to when they will accept paper filing and they have also produced a form that needs to be submitted with each paper filing and the link is below.

http://www.hmrc.gov.uk/ct/ct-online/reasonable-excuse.pdf

We submitted a number of post 31 March year ends ahead of the 1 April 2011 deadline, but have none past April 2011. 

However, given that online filing is mandatory, I do wonder whether post April 2011 paper filings, which have been done for early submission, will end up with a penalty notice once the relevant 12 month filing window has ended. 

 

mr. mischief's picture

sheer drivel

mr. mischief | | Permalink

This sort of drivel come as no surprise from HMRC.

How can it possibly be justified when, with the boot on the other foot, VAT rate changes have to be implemented by retailers in EPOS etc. with about 6 weeks' notice?

They have deleted an August VAT return from their system and refused to accept a paper or e-mail copy, "wait until November".  Fine.

But in that case I should have until 30 April 12 to file all 10-11 self-assessments, and until 19 August 2012 to file P35s without any mention of "late filing" penalties.

 

mr. mischief's picture

VAT return

mr. mischief | | Permalink

I've just tried to file a VAT return for a different client, looks like the entire system is still down for every single tax.  This is at 1130 on Sunday 9 October, no mention of that downtime on the HMRC notice.

No matter how awful you think they are, they continually think up new ways to get even worse!

mr. mischief's picture

still down

mr. mischief | | Permalink

0645 on Tuesday 11th - tried VAT, SA and corp tax submissions, all failed.

What a shower these people are!

mr. mischief's picture

success!

mr. mischief | | Permalink

One SA return submitted, 0850.

Taxcalc can't do it.

chatman | | Permalink

Taxcalc still seems to think you cannot file yet.

mr. mischief's picture

it's ok    1 thanks

mr. mischief | | Permalink

I've filed 3 company returns and 2 SA by Taxcalc today.  they all look like they won't work, but when you say submit they go through OK.

@mr.mischief

chatman | | Permalink

Great. Worked for me too. Thanks. A bit lazy of TaxCalc!

mr. mischief's picture

My book on this

mr. mischief | | Permalink

My book on this is as follows:

HMRC's fault 1-99 odds on

Taxcalc's fault  50-1

maximum bet size 1 pence as it is a no-brainer!

 

Penny wise

leon0001 | | Permalink

mr. mischief wrote:

My book on this is as follows:

HMRC's fault 1-99 odds on

Taxcalc's fault  50-1

maximum bet size 1 pence as it is a no-brainer!

 

Don't you mean maximum bet a penny?

 

inadequacies of HMRC system

david5541 | | Permalink

fishfishyfishfish wrote:

inadequacies of HMRC system :

this is nothing new:

we have taken the view that like all systems publicised and introduced by HMRC it is so much of a top down methodology that loal offices(who fortanately still run corp tax compliance) get dissillusioned and arent envolved in implementation(if there ever was something like this for HMRC-since the buck stops with agents and taxpayers) so we have held out until IXBRL is fully bedded in at the HMRC end. ............we have 12 months from 1/4/11 anyway.

Interesting to read the above comment. We too have attempted to file paper returns in respect of APEs dated after 31 March 2011, however our clients' local tax office appears much less inclined to accept them. We tend to get a "do it online in October" rejection letter. I'm still amazed how we find ourselves in a situation where we are obliged to file the returns online, yet prevented from doing so for several months each year by the apparent inadequacies of HMRC's systems.

This article highlights the

Jayaprakash.M | | Permalink

This article highlights the situation where correctly compiled CT600s had been rejected just because there was a glitch in the HMRC's Computer systems. It was fed with the previous tax rates and hence did not accept the new tax rate compiled tax returns leaving tax filers in a dilemma. This article keeps tax filers on top of the news in the accounting world.