Self Assessment Online

Accounting periods for Self Assessment

Self-employment - change in accounting period

Where there is more than one set of accounts, the online return should be completed to arrive at the taxable profit for the basis period.

Additional information for any other accounting periods should be submitted by paper separately on Forms SA103F with a covering letter explaining that they form part of the return which has been submitted electronically and are for information purposes only.

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Capital Gains Tax

You can tailor the main Tax Return to fit the circumstances of your client. The new main Tax Return introduced in April 2008 allows customers to tailor it to their circumstances.

HM Revenue & Customs (HMRC) are not being prescriptive about what has to be put into a capital gain computation, but it must show enough details of how the gain or loss is arrived at, including details of any claims or elections. A working sheet for simple disposals is available within the guidance notes.

The Self Assessment submission must contain at least one PDF attachment or an entry in the white space if a Capital Gains Summary is present. The Capital Gains white space limit will be 20,480 characters.

If you use the HMRC Online software the attachment size limit will be 5MB and within that will be limited to ten iterations of the optional PDF working sheets and/or limited to a maximum of 20 attachments per submission. Totals from the worksheets will need to be transferred into the Capital Gains page of the return.

The 5MB limit for attachments also applies to commercial software submissions but the possible number of attachments is unlimited.

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Client list

When you access the Self Assessment Online service you will see two options under 'View your clients' account details and tax return status' - you can either 'View all clients' or 'Download client list'.

If you want to view details for an individual client, you should choose the 'View all clients' option. You will then be presented with a list of your clients via an A-Z search facility.

'Download client list' allows you to produce a full list of clients which can then be saved to your own system.

At present, the HMRC client list shows a name, Unique Taxpayer Reference (UTR) and your own client reference for each of your clients, but not their contact details. If you find that a client name is incorrectly displayed please report this to the Online Services Helpdesk Tel 0845 605 5999.

Where there are known problems with client lists you will be able to find information about these on the Service Issue pages of HMRC website. If you cannot find any mention of the problem you are experiencing you should contact the Online Services Helpdesk (Tel 0845 605 5999).

Self Assessment Online - service issues

Deleting clients

You can use your online authorised client list to delete a client for whom you no longer act. You should always do this through the HMRC Portal rather than the Government Gateway. Select the 'Remove client' link and then 'Delete' against the relevant client. It will take about 30 minutes for the client to disappear from your list, and HMRC back end system will be updated.

Occasionally deleted clients re-appear on agents' online lists. HMRC are hoping to fix the problem, but meanwhile if you experience this you should contact your local Tax Office to have the 64-8 signal removed.

Please note that when removing a client for whom you no longer act, you'll need to do it separately for each of the services for which your client has authorised you.

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Client references

Although HMRC's main client identifier is the UTR, many agents use references of their own to identify clients. Unfortunately at present HMRC are not able to update the backend computer system with the revised client references that you send when making online submissions. All the paper output sent out to you relies upon that backend system for source information, so for the time being you will continue to see your old reference on anything HMRC send you on paper.

The online client list is held in a different data store and is updated by the online process, but even so the client references revert to their original version when the system is updated each April.

If you use the 'maintain client' functionality and the client reference you input is not then retained on your online client list, you should contact the Online Services Helpdesk Tel 0845 60 55 999 providing details of the client's UTR and dates/times of when the change was made.

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Clients without a UTR

Self-employment

Taxpayers should notify HMRC within three months of commencing self-employment (failure to do so may incur a penalty). Where notification is too late for a tax return to be issued in the usual April issue, HMRC will issue a Self Assessment tax return (which will show the UTR) and the taxpayer will have until 31 January following the year of assessment to file the return, or three months from the date of issue, whichever is later.

Paying tax

Taxpayers who don't have a UTR may nonetheless have tax to pay by 31 January. To avoid late payment penalties and interest they, or their agent, should send a cheque to Shipley or Cumbernauld with a covering letter saying the payment represents the Self Assessment liability for someone who doesn't have a UTR. It is important to keep a copy of the cheque or note the details. HMRC will cash the cheque and put it in a holding account. When the taxpayer or agent receives the UTR they should contact Shipley or Cumbernauld and advise them of the UTR and cheque details. Money held will then be transferred to cover the taxpayer's liability.

Non-residents

The above also applies to non-residents liable to Self Assessment but who do not have a UTR. If it is not possible to submit a return by the deadline, penalties and interest in respect of late payment may be avoided by following the procedures set out above under 'Paying tax'.

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Directors - requirement to complete Self Assessment tax return

There are some directorships where tax returns do not need to be completed for the reason of the directorship alone. Provided that their tax affairs do not otherwise require completion, returns will not be required from directors of companies which are set up for charitable purposes, or that are neither profit making nor trading and that do not make payments in any way or provide any company benefits for the directors.

The following are examples:

  • directors of Community Amateur Sports Clubs (CASCs)
  • directors of companies set up by tenants to manage freeholds
  • nominal directorships (for example school governors)

Where they otherwise qualify to do so, based on other income and amounts, relevant directors can complete a Short Tax Return (SA200) rather than a Main Tax Return (SA100). If directors are required to complete an SA100 or SA200 they will need to be given a UTR.

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Entering information onto the return

  • Income from lettings - Income from all Furnished Holiday Lettings (FHL), and from all other properties, can be entered as single sets of figures for FHL and/or Income from Property. Separate sources do not need to be shown individually.
  • Interest and foreign dividends - The Foreign pages (SA106) currently carry restrictions on the number of entries. Agents can use a schedule if there are insufficient rows (the schedule can be provided in the 'additional information' box or as an online attachment).Small amounts of foreign dividends up to £300 can be entered on the core return rather than on the foreign pages. However only basic tax credit (ten per cent) will be given; if this is not the same as the rate at which foreign tax was deducted you may choose to use the foreign pages for these entries.
  • Multiple chargeable events - In some cases a taxpayer has chargeable event gains on more than one policy and the number of years for these policies are different, for instance because they were taken out in different years. Section 12 of the Self Assessment tax return only allows for one number of years entry for each type of policy. It is however still possible to file such cases online, if you are using a commercial software product. Gains should be listed, showing the number of years for each, in the white space additional information box. The total of gains should then be entered in the appropriate boxes but no entry should then be made in the 'number of years' boxes. You cannot use HMRC software to file online if there are multiple chargeable event gains.
  • Multiple directorships - Where multiple directorships include dormant offices from which no remuneration is received it is not necessary to complete the employment pages for those directorships.
  • Multiple pensions - When filing online for a client with multiple pensions it is possible to enter details of up to ten individual pensions.
  • Main Tax Return - provisional figures. Do not miss the filing deadline because you are waiting for final figures. Instead provide provisional figures, stating when final figures will be available and making sure you send the final figures as soon as you can. You could be charged a penalty if you did not have good reasons for supplying provisional figures or you provided unreasonable ones. HMRC do not consider: pressure of work (taxpayer or tax advisor) or the complexity of your affairs to be good reasons for using provisional figures. There is a check box against the question 'does this return contain provisional or estimated figures?'. This must be 'checked'.
  • Non-residence - Non-residence returns using form SA109 can be filed online using commercial software. When completing returns for overseas clients with UK income, if the client is not resident in the UK it is necessary to show the number of days spent in the UK in box 10 of the new main tax return. Numbers in the range 0-366 are valid.
  • Employment page (SA102) - it is not necessary to complete an employment page where either of the following applies:

    An employee receives reimbursed expense payments only.
    A director receives no income, payments or benefits from the employment. An employment page must be submitted if a director receives income, even if that income is reimbursed expense payments only.

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Foreign Income - 10 per cent tax deduction for foreign pension

Where a foreign pension has been subject to 10 per cent tax it is necessary this year to adopt a 'workaround' to be able to file online using HMRC software. Enter the amount after the 10 per cent deduction in both the following boxes on the 'Overseas pensions, social security benefits and royalties etc' page of the SA106:

  • Amount of income arising or received before any tax taken off
  • Taxable amount (pre-populated when you make an entry in the box above).

You should note the gross pension amount in the 'Additional Information' box, and explain that you have had to enter the net amount in the boxes listed above.

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Notice to file

For those who have previously filed online a notice to file is issued in April each year (no paper return is issued).

Paper returns were issued in April 2008 to those who have previously filed on paper using form SA100. Customers who use an agent to file their tax return, and who submitted a 'substitute' tax return for 2006-07 received a notice to complete a tax return, SA316, in April 2008. These customers have also received an SA316 flyer to:

  • notify them of the new filing deadlines in case they wish to file their return on paper
  • advise them that 'substitute' tax returns are no longer suitable
  • remind them of the benefits of filing online

When HMRC are told that someone no longer receives a source of Self Assessment income it does not automatically stop sending them a return. This is because there may be other reasons why they are in Self Assessment which have not ended.

If a return, or file notice to file a return is issued by HMRC, a return needs to be completed and delivered on paper or online by the relevant deadline.

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Online amendments – updated September 2009

You can make online amendments to tax returns. The window for doing this is generally twelve months from 31 January following the end of the year of assessment (for example, until 31 January 2010 for the 2007-08 return). If your client's return was issued later than the standard date, and the deadline for filing it is after 31 January, amendments can be made up until the first anniversary of the filing deadline for that return.

If you wish to make an amendment to a return after this window, different arrangements apply, and you cannot submit the amendments online. The link below gives further information.

When using HMRC's free software the 'Amend return' function is found under 'Tax return options'. Commercial software providers have made similar provision for amendments - contact your provider if you require further details.

You can only make amendments using HMRC software if you have used that product to file the original return. However if you use commercial software you can make amendments to returns which have been filed using paper, HMRC software, your own commercial software or other commercial software.

You can make up to nine online amendments in a year, but you will need to leave at least a day between each one. Following submission of amendments you should allow 48 hours for changes to take effect. You should then be able to see the effect of any changes in the 'View Account' facility.

Where there has been a change of agent, the client or the new agent can make online amendments to a return submitted by the previous agent.

Tax return corrections and refunds

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Partnership returns

Self Assessment partnership returns can be filed online using third-party software.

Find commercial software that can file via the Internet.

There are no current plans to add partnership returns to the HMRC free software product. Although HMRC are making a considerable investment in online services over the next few years, including enhancements to the HMRC free software product, it does have to prioritise the improvements it makes, and is focusing investment on the enhancements it knows are important to a majority of customers.

Individual partnership pages

Individuals can file their partnership details, including details of overlap profit, online using HMRC's own product or third party software. Both short and full versions (SA104S and SA104F) of the partnership pages are available.

More than one trade

It is possible to file partnership returns online where there is more than one trade involved. The online partnership return should be completed with details for the largest of the trades. Paper schedules, including the corresponding Partnership and Paper Statements, should be submitted as attachments.

Requirement for partners' UTRs

You must enter the UTR for the partnership and each individual partner to file the partnership return. Filing a partnership return late because a UTR for one or more partners is unavailable is not accepted as a 'reasonable excuse' for filing a return late.

Since February 2009 a special unit of CAAT, in Longbenton, is dealing with all enquiries about UTRs for partnerships and partners. For more details follow the link below.

UTRs for partnerships and their members

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Penalty notices for late filing

Paper returns filed after 31 October will be subject to a late filing penalty. If this is the case the taxpayer will be alerted to this via a message on the SA302 tax calculation, after the return has been processed. Penalty Notices themselves won't be issued until February. If all the tax due has been paid by 31 January the Penalty Notice will be issued in the sum of nil; as the penalty cannot exceed the amount of tax outstanding at 31 January.

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Pre-population of online return

HMRC have enhanced our Self Assessment online tax return for 2007-08 returns. When you use the main online return you will automatically see certain pre-populated data that HMRC already holds.

For example:

  • name, address, date of birth and email address
  • Unique Tax Reference number (UTR)
  • National Insurance number
  • Box Cal 7 - tax underpaid for previous years included in current year's code number
  • Box Cal 8 - tax underpaid for current year included in subsequent year's code number
  • Local Authority details for customers who are registered blind
  • Student loan indication

This does not mean that HMRC have completed the return for the individual. The information used to pre-populate the return is there to help, by reducing potential customer error.

Users can amend the pre-populated data by overwriting it. There is also space available on the return for additional information where you can give your reason for making any such changes. HMRC would recommend that you give the reason as this could reduce the need for later clarification.

Agents who file online using commercial software products will be able to view the same data by using HMRC's Self Assessment pages. This data can be accessed from the 'at a glance' page using 'tax returns options'.

HMRC are looking at ways to introduce pre-population of commercial software products. Software developers are actively involved in working with HMRC to establish how we take this forward.

At the moment there are no plans to extend the provision of prepopulated fields in either the HMRC or commercial software products.

State pension figure

The pre-populated pension figure in the online return is provided by the Department for Work and Pensions. If the taxpayer or agent disagrees with the entry it can be overwritten. In such a case the online calculation will use the agent's entry. HMRC recommend that if the figure is overwritten that an explanation is provided in the 'white space' box on the return.

The pre-population function for pensions applies only to state pensions - there are no plans to extend this to occupational pensions.

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Previous years' returns online

From April 2009 you can file previous years' returns online. The first tax year for which you can do this is 2007-08. We shall gradually increase this until there six filing years available. After that the number of available years will remain constant, on a rolling basis. On 31 January each year the sixth previous year goes out of time, which affects this pattern as shown in the sample table below.

Please note that returns for previous years will not calculate interest.

Available online until:

Current year -1

Current year -2

Current year -3

Current year -4

Current year -5

Current year -6

31.1.10

2008-09

2007-08

        

31.1.10

2009-10

2008-09

2007-08

      

31.1.10

2010-11

2009-10

2008-09

2007-08

 

 

31.1.10

2011-12

2010-11

2009-10

2008-09

2007-08

 

31.1.10

2012-13

2011-12

2010-11

2009-10

2008-09

2007-08

5.4.14

2012-13

2011-12

2010-11

2009-10

2008-09

 

31.1.15

2013-14

2012-13

2011-12

2010-11

2009-10

2008-09

5.4.15

2013-14

2012-13

2011-12

2010-11

2009-10

 

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Repayments

When you file online for a taxpayer who is due a repayment HMRC send the refund directly to the customer's bank/building society account. This is the preferred method because it is safe and efficient. For you or your client to receive the repayment the relevant bank details section on the return should be completed. If that section is not completed a repayment will not be issued. Small amounts under £10 will normally be carried forward, but taxpayers can request repayments of these amounts if they wish.

Where repayment by cheque is to be requested, either to the taxpayer or to a nominee, the bank details section should be left blank. Once the return has been successfully submitted you or your client should contact their Tax Office and ask for the repayment to be made by cheque.

In cases where repayment by cheque should be made to a nominee, this procedure still applies but the nominee's name and address details must be provided.

Return not required but repayment due

A credit balance exists on a customer's record where the current payments exceed current charges. This will be held until either a charge becomes due or a repayment is requested. You and your clients should check statements to be sure the entries are correct. Where there is a credit balance your client (or you on their behalf) can request repayment or leave the credit on their record.

Automatic repayments

The online filing facility for Self Assessment has many benefits, one of which is that in the great majority of cases any repayment claimed is paid out automatically and therefore much more speedily than if the return had been filed on paper. HMRC know that agents value this aspect of online filing and that their clients are generally very happy with the outcome.

However in some cases, the operation of risk criteria means that an automatic repayment is not made and the case is added to a work list to be reviewed by HMRC staff.

The list below shows the factors that cause automatic repayments to be inhibited. Although some of the entries are of a procedural nature and may be related to audit or security requirements, it should be possible in most cases for you to determine whether your client's circumstances are likely to mean that automatic repayment will or will not be made.

  • Taxpayer is insolvent
  • Priority Collection Action signal is set
  • Taxpayer is deceased and no capacity details held on the Self Assessment record
  • Taxpayer's address is RLS
  • Welsh language signal is set
  • No repayment signal is set
  • Uncleared payment present
  • Remission recorded
  • Informal standover recorded
  • Payable order is over £150,000
  • BACS repayment is over £90,000,000
  • ELS/FBI return submitted and taxpayer address on return differs from that shown on Self Assessment record
  • A return charge has not been entered on the taxpayer's record
  • The charity code does not relate to any charity currently participating in the 'Charitable Giving' scheme
  • The repayment request is included within a return e-filed by a 'filing only agent'
  • A combination of inhibiting factors is present

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Saving online returns filed using HMRC product

Until now, tax returns filed via the HMRC product could be viewed and printed up until the end of March following the end of the tax year (for example until March 2008 for the tax year 2006-07).

For 2007-08 returns onwards, partially completed returns will be retained on HMRC systems for the six-year window. This is part of the improvements planned for April 2009 to file earlier years' returns online.

In addition you can reopen completed and submitted returns from 2007-08 onwards providing the original was filed using the HMRC software to make an amendment during the amendment window (12 months from 31 January following the end of the tax year).

You can view fully completed and submitted returns is the same way as previously (by saving them to your own local drive).

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Short Self-Employment page (SE103S)

The short Self-Employment page (SE103S) was introduced in April 2008 for Self Assessment taxpayers with turnover below an annual threshold (£64,000 - rising to £67,000 for 2008-09 returns).

There is no 'Three Line Account' section, but for those with a turnover of less than £30,000 some fields are optional. You can see how the online process for this works on the 'Self Assessment - Tailor your return' facility on the online services demonstrator.

In some circumstances the full Self-Employment page (SE103F) must still be used even when turnover is below the threshold - the guidance notes to the Self-Employment pages explain this.

Online services demo

Forms and guidance for Self-Employment returns

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Supplementary pages

HMRC's software product Online Tax Return for Self Assessment includes the form SA100 Tax Return plus Employment (SA102), self-employment (SA103), Individual Partnership (SA104), UK Property (SA105).

In response to customer demand, HMRC have enhanced the Self Assessment Online application to add supplementary pages for Capital Gains (SA108) and Foreign Income (SA106)

The maximum number of supplementary pages when using the Online Tax Return Self Assessment product is as follows (see also the notes for each of the forms):

  • Employment (SA102) - 15
  • Self-employment (SA103) - 5
  • Individual Partnership (SA104) - 5
  • UK Property (SA105) - 1
  • Foreign (SA106) - 1
  • Capital Gains (SA108) - 1

If you are using commercial software then the number will vary according to which software product is being used. You should contact your software provider for more details.

There are several commercial software providers that have been accredited by HMRC. Several of them support the whole range of supplementary pages for Self Assessment.

If you require more than these limits a paper return will have to be made.

It is not possible to send in supplementary pages by post, nor can they be scanned and submitted as attachments, while submitting the main tax return online. The return must be sent either wholly online or wholly on paper.

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Tax calculation

For those who file online a tax calculation is provided before submission in all cases. Future payments on account are shown at the bottom of the online tax calculation.

Taxpayers (and their agents) who file on paper by 31 October will be sent calculations in time for them to pay the correct tax by 31 January.

Taxpayers (and their agents) who file on paper and who prefer to calculate their own tax may request a tax calculation summary page (form SA110) from the Orderline Tel 0845 9000 404.
If you want to know more about paper tax calculations issued by HMRC look at:

Understanding your tax calculation

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Tax Returns - forms that cannot be filed online

The only tax returns that cannot be filed online at present are:

  • SA700 Non Resident Companies liable to Income Tax
  • SA970 Trustees of Registered Pension Schemes

The supplementary pages which cannot be filed online are:

  • SA102MP Members of Parliament
  • SA102MLA Members of the NI Legislative Assembly
  • SA102MSP Members of the Scottish Parliament
  • SA102WAM Members of the National Assembly for Wales

A minority of taxpayers cannot file online. In some cases this is because they cannot register for the Self Assessment Online service because their taxpayer reference numbers are not recognised by the authentication system. Customers in this situation have been advised by letter that this is the case. HMRC are continuing to look at ways to extend the online filing service to this group.

Customers in this minority have until 31 January to file their paper returns.

Filing deadline for widows of MPs (SA102MP)

The widow of a MP, who receives an MP's pension, would have to complete schedule SA102MP and therefore would not be able to submit a return online. The paper filing deadline for this type of return is therefore 31 January.

The HMRC Self Assessment Online Return filing application does not cover:

  • Partnership Return
  • Trust & Estate Return
  • Ministers of Religion
  • MPs MSPs etc as above
  • Non Residence
  • Lloyds Underwriters

These returns can be filed using commercial software.

Find commercial software that can file via the Internet.

The Short Tax Return cannot be filed online because this is a scannable paper form but recipients of the Short Tax Return can file online using either the HMRC application or commercial software.

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Tax return submission receipt reference number (previously 'IR Mark') and client approval of returns – updated September 2009

A unique tax return submission receipt reference number (SRRN) is automatically generated on each online tax return. The purpose of the SRRN is to ensure that the return which you submit is exactly the same return which is received by HMRC, following its submission, encryption and decryption.

You may also wish to use the SRRN as a tool to identify the return which your client has approved. You should note however that any change to the return (and possibly updates to your software) will alter the SRRN. It is important therefore that you maintain an adequate audit trail of your client’s approval of their return, including any amendments which you make before submission.

HMRC is not prescriptive about how the client approval is obtained – you may wish to retain paper, electronic or even telephone records to demonstrate that the information you submit is the same as that which your client has approved. Your indemnity insurance may prescribe certain methods/records and you should also bear this in mind when obtaining client approval.

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Trust and Estate Returns

Online filing of returns

Self Assessment Trust and Estate Returns can be filed online using third-party software.

Find commercial software that can file via the Internet.

There are no current plans to add Trust and Estate Returns to the HMRC free software product. Although HMRC are making a considerable investment in online services over the next few years, including enhancements to the HMRC free software product, it does have to prioritise the improvements it makes, and is focusing investment on the enhancements it knows are important to a majority of customers.

Unlike other Self Assessment returns filed online, filing a Trust and Estate return online does not provide an automatic tax calculation.

'Period of Administration' returns

The liabilities of deceased persons can sometimes be finalised in-year. It may not be necessary to file a final return; in such cases you should contact the appropriate HMRC office dealing with Trusts and Estates.

Online Returns

From April 2008 online amendments may be made to Trust and Estate Returns, as with other tax returns.

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Two filing deadlines

Adopting different filing dates for paper and for online filing provides an incentive to file online and helps to spread the 'peak' of post-filing work for HMRC. It also keeps the option to file on paper for those who prefer to do so.

These deadlines are consistent with the findings and recommendations of the Public Accounts Committee report into the Filing of Income Tax Self Assessment returns published in February 2006.

The new paper filing deadline strikes a balance between what UK taxpayers agents are used to and the international average for filing of returns.

The enquiry window, which is the period after you submit a return during which HMRC may open an enquiry into the return now runs for 12 months from the date the return was submitted (for returns submitted on time).

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Viewing online returns

Where an agent has completed and submitted the client's Self Assessment Return, both the agent and the client will be able to view it (the client would of course have to be registered to use Self Assessment Online to be able to do this). Where the return has been submitted by a previous agent the new agent can view it.

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