I have a client whom I have completed a 16/17 tax return for. Because of adjustments to his savings allowance, his return cannot be filed electroncially, so I have had to instead post a paper return to them. The issue is, this client is applying for a mortgage and his lender wants copies of his SA302's for the past 3 yearrs (including 16/17) but HMRC have advised it will take 3 months to process his paper return.
Because we use IRIS, I cannot download a copy of his SA302's directly, I have to request them from HMRC, and the lender won't accept copies of our computations. I have tried to explain to HMRC that this is down to thier system not accepting the electronic return but I just kept being told there was nothing we or they could do, it will take 3 months. This seems very unfair to me and it may be that my client has to find another lender who will accept our computations, but this may lead to them paying higher rates, so again, not an ideal situation for them.
My questions are, has anyone else had any experience in a similar situation? And if so, did you manage to get HMRC to speed up the process or was it just a case of tough luck for the client? If no one has, at least I've had a little vent.
Replies (19)
Please login or register to join the discussion.
I haven't.
And this year will be tough as they'll be getting mote paper returns than usual. Forff some reason .....
When we did paper returns as the norm, I did use to write on the front page in red "Repayment return". I've no idea whether that helped.
Recently HMRC told me there is an agreement in place between the Council of Mortgage Lenders and HMRC to the effect that the members of the CML will accept tax software calculations and not require SA302s from HMRC. If you phone up HMRC to request an SA302 you are asked who the prospective lender is. If it is a member of the CML then HMRC refuse to issue a SA302.
You also need to supply the lenders with a Tax Year Overview printed from the online account, agreeing to the software SA302. Problem is until HMRC process the tax return the figures won't agree.
With 62 (and rising) variants of the paper requirement, the 3 months delay will only increase. It will be interesting to see if the October 'fix' cures the most common problem ones.
Surely these lenders don't live in a sealed bubble, and realise that there is a problem. The solution to which is a total income statement signed by the accountant as true and fair!
I think that it is also probable that until the fixes have been incorporated HMRC's calculation may not even agree with the liability.
"Surely these lenders don't live in a sealed bubble"
Oh yes they do and they have done for years and years and years.
They have a box to tick and if they don't tick it tough sh*t is how it usually works.
And it doesn't matter if the lender is a member of the CML and there is agreement between the CML and HMRC unless the person ticking the boxes has been told that there is.
Your third party software won't allow you to submit electronically but have you tried completing the Tax Return online instead using HMRCs own form?
Surely you can submit online with either third party or HMRC software pending the October update. how much difference does this make in effect , they are interested primarily in the income not the tax surely. the tax year overview for 2016 17 is technically irrelevant as the tax isnt due yet. resubmit later HMRC shouldn't have it both ways
Not so.
Tax for 16/17 up to the amount of the tax payable in January for 15/16 is already due.
Quite right jack , i presumed that if he was applying for a mortgage that all his payments on account would be up to date otherwise he wouldn't get the mortgage
Asked the question at the HMRC webinar today.
Answer: Contact HMRC (?Agent phone line?)and ask for the return to be processed as a matter of urgency.
I presume that returns must be scanned when received on paper, so the hope would be that the scan could be traced and processing brought to the front of the queue. Quite whether that will also require staff on the helpline to not just say "we deal with all post in date order" is another matter.
I did ask a follow up re how, and 'have staff on the Agent Line been told to fasttrack' but that did not get answered in the time
Do you have an Agent Account Manager? Perhaps this would be a case for them to try to expedite matters...and tell them to listen to the answer given at the recent HMRC Webinar on 2016-17 TR Exclusion cases.
I have filed an electronic return as well, which will yield the wrong tax calculation, but at least this way the SA302 can be ordered and then once the paper return is processed the hope is that this will supersede the electronic one. If not I will just have to re-file further down the line.
As a follow up at the webinar HMRC said they would identify any returns affected and make the change after October. They should therefore pick up your electronic submission with incorrect figures and amend automatically in due course without you needing to do anything
Well given the Revenue's track record I would struggle to believe anything they say. I will be making sure that any paper returns that they do not correctly process will have a complaint made and an associated fee note directed to them for the additional work.
That is not to say they will not process the paper returns correctly but history says they will screw something up. Currently we all bend over backwards to help them....sometimes you have to stop bending!