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HMRC Exclusions

Article ID: 2720
Last updated: 24 May, 2019

Why am I getting a message about an Exclusion and I have to paper file my Return?

Exclusions refer to scenarios on tax returns which HMRC are unable to process, with the correct calculation, electronically. For these cases, HMRC advise that paper returns be filed.

If you need to send a paper Tax Return after 31 October, then you will need to attach a ‘Reasonable excuse’ form.

In addition, HMRC will expect individuals to make a reasonable effort to estimate their income tax liability based on the information available and make an appropriate payment by 31st January.

HMRC 2018/19 Calculation issues and updated Exclusions

Exclusions have arisen because of the introduction of new allowances and bands for certain types of income, making the calculation of the tax liability more complex. HMRC systems expect our software to match their method of calculation in order for the returns to be filed electronically. However, the legislation states that HMRC should ‘deduct the reliefs and allowances in the way which will result in the greatest reduction in the taxpayer’s liability to income tax’and this is not always the case in their calculations.

Consequently, our software may not provide the correct calculation and in this instance, a paper return should be filed in order to highlight the inaccuracy and which Exclusion is occurring.

You will see an information message in the Check & Finish section within TaxCalc letting you know if the return is covered by an HMRC Exclusion. HMRC are committed to updating their systems for these anomalies and our hope is that many of the Exclusions will be rectified for 2019/20.

Please click here to see the latest list of HMRC Exclusions

 Reference:

1 Income Tax Act 2007 Sections 23 – 25 and 34

Article ID: 2720
Last updated: 24 May, 2019
Revision: 20
Views: 3530
This article was:  


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folder Tax Return Production -> SA100 Individual Return

External links
https://kb.taxcalc.com/client/images/icons/article_out.svg https://www.gov.uk/government/publications/self-assessment-reasonable-excuse-for-not-filing-return-online