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E-filing stats over shadowed by HMRC software error

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2nd Feb 2007
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HMRC claim that there has been a 40% increase on last year’s filing figures as almost 2.9 million people chose to file their returns online. This means that the repercussions of an error on their online filing software statistically may affect a greater number of taxpayers.

There were indications from Accountingweb members that HMRC’s systems and own software were not performing adequately on the run up to 31 January. No one, but no one, it seems had spotted a serious error on HMRC online returns though. After 30 December, the option to request that any tax owed for 2005/6 is collected through the tax code in box 23.1 of the SA return should have been made inactive. Unfortunately, this did not happen…

HMRC only publicised this mistake on 30 January, and then advised that customers should select the option ‘No’ in response to question 23.1, and “make provision to pay any tax due by 31 January.” This advice will have come far too late for the majority of employees affected, who may now have an unpleasant shock when they find that they have to settle any liability instead by 31st January. Failure to pay up by 28th February will lead to tax surcharge of 5%, together with late payment interest.

Affected taxpayers should contact their tax offices as soon as they can confirm that they are affected by the error.

Paul Gray, acting chairman of HMRC, talking about increased filing figures said: “The public have realised the benefits of doing their returns online. Not only is it a secure, quick and convenient way to file but you get an immediate acknowledgement and faster repayment if we owe you money. If you file online your tax is automatically calculated.”

He did not comment on the box 23.1 error.

Their press release does not detail either whether these people choosing to file online actually managed to complete the whole task successfully, not does it say how many were filed by agents. It does say that the total number of self assessment returns both on paper and electronically will not be known for several weeks, as paper returns are logged manually.

HMRC’s stats for the file:

1. Over 9 million returns were issued in 2006/07

2. Historical online filing stats:

* 2004 - 1,079,298
* 2005 - 1,599,364
* 2006 - 1,989,927

Source: HMRC press release and website

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Replies (3)

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By carnmores
04th Feb 2007 14:44

Well i certainly did!
For a change this year i filed most of my returns throough HMRC software. I think i, and any other practicioner, knew better than to ever tick the box, i just put it down to a lack of update - are they now contractually bound to adjust the tax codes?

by and large all went well, the site is gettiing better and there are quite a few useful tools on client payment especially showing a payment has been broken down into tax years (rather than working backwards from the statement)

my only concern is that some returns that were filed on 31st in the late evening , have a receipt dated 4am on 1st Feb, it will be interesting to see the penalty effect. we have not heard from IR re this matter perhaps someone could ask for a directive. interestingly it speeded up after 11pm either everyone gave up or someone found the unplugged server!


on a different point if in the next few years all returns have to be submitted electronically (as with P35 etc) will the IR provide software that covers almost all scenarios, eg including Partnership returns and CGT. they cannot insist on electronic filing if they do not provide the tools to do the jobs. And they surely cannot charge for this service so what of the software providers own solutions.

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Nigel Harris
By Nigel Harris
05th Feb 2007 11:28

It worked fine for me
Like many busy tax accountants, I left my Return till the last minute! I filed it on Sunday 28th using the Revenue's online system and definitely remember seeing a warning that any underpayment could not be collected through my tax code, so even if box 23.1 wasn't greyed out it shouldn't have caught out anyone who read the on-screen instructions. Mind you, since this question appears on screen 876 (or thereabouts!) you can forgive most people for losing concentration at that stage!

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By stuart elkins
09th Feb 2007 14:54

Late response
I had to extend my software package with PTP to cover FBI in view of the substantial delays in responses from the Revenue when Tax Returns were submitted.
Bristol & ---- were taking 3 months to respond for the 2005 ITRs.

In addition, the Revenue own software for 2005 was collecting tax due by 31 January 2006 from repayments for 2005-06 even though the ITRs were processed in AUGUST 2005 - this was totally unacceptable and against their own regulations = within 45 days or under £10. It took me several hours and over 7 phone calls plus letters to have them confirm this problem existed.

I do not know if the problem is also with 2006 Revenue software

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