Self-Assessment individual exclusions for online filing in 2016/17

Sep 28, 2017

It has been recently confirmed that when individuals try to file their 2016-17 Personal Tax Return online, there is no guarantee this will be accepted by HMRC’s software. There are a number of circumstances where HMRC are incapable of calculating the correct amount of tax liabilities or repayments to individuals. As such, the returns are unable to be filed online. HMRC have provided a list of current ‘Excluded Cases’ as of 19th June 2017. The link to these can be found below: 

They have confirmed that the most common areas that lead to these ‘excluded cases’ are: 

  1. Saving Starting Rate band not allocated to savings customers receiving non savings or non-dividend income between £1 and £16,000.
  2. Basic Rate Band extending incorrectly for Dividends where the customer is liable at the additional rate.
  3. Basic Rate Band extended incorrectly for Lump Sum Payments.
  4. Basic Rate Bank extended incorrectly for customers with gains from life policies.

At present there are 62 ‘excluded cases’, and by the end of October 2017, HMRC are intending to update their systems to correct a further 11 excluded cases. 

In the instance that an individual is still unable to file their Tax Return online, a paper Tax Return will be required to be submitted. The deadline to submit a paper Tax Return for the 2016-17 tax year is 31st October 2017. This could potentially result in a large number of Tax Returns failing to meet the deadline and resulting in a default £100 late filing penalty. 

Obviously HMRC have foreseen that there is a potential issue here and so have confirmed that as long as the completed paper Tax Return is sent in with an accompanying Reasonable Excuse Form, the penalty will be revoked. 

It has therefore never been more important to send in your Tax Return information before 31st October!!  As for HMRC, they weren’t ready for making tax digital for businesses and this was suspended; it now seems they are incapable of receiving their own forms in some circumstances.  

If you would like more information please contact Nicola Cook at Whitley Stimpson on 01494 448122 or by email at