Exclusions have arisen due to the previous introduction of additional 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 methodology.
Whilst some of last years' issues have been corrected by HMRC, some remain and some have also been added. Consequently, our software may not provide the correct calculation and for most scenarios affected, before filing, TaxCalc will identify the exclusion number and provide instructions on how to deal with the return.
Special Cases represent issues that HMRC have identified as requiring a workaround in order to prevent a filing rejection. Where possible, we have taken care of these workarounds within the software or have provided a message before live filing to advise how to deal with the workaround. There are limited scenarios where a paper return will need to be filed. Some examples of special cases are:
Before filing, TaxCalc will identify the Special Case number and provide instructions on how to deal with the workaround.
Should paper filing be required, to print your tax return with a Reasonable Excuse form attached:
4. Click Close once completed.
5. Preview to check pages.
6. Hover the mouse over the return to see the Print options.
Looking for exclusion and specials links to earlier years?