Self Assessment Notes for Software Developers

February 2009

Self Assessment online filing advertising and results
1046 errors
Penalties and reasonable excuse
Pre-registration
Update delivered
Update on future enhancements
Collaborative approach to live issues
Index to recent Self Assessment documents
Events
Meetings
Contacts for specific issues

Self Assessment online filing advertising and results

Our current Self Assessment marketing campaign has just ended. Leading up to the 31 January filing deadline we used a variety of media - television, radio, press, roadside, underground and online adverts - to promote the filing deadline as well as the online message. The target was to lift online filing from 43 per cent last year to 58 per cent this year. In the event we surpassed this, with two thirds of the Self Assessment population filing online. And the amounts in the final few days were higher than ever before.

4.1 million returns were filed online using commercial software, accounting for 47 per cent of the total number of Self assessment tax returns received, for the first time more than the number of paper tax returns filed.

We recognise that the changes to the tax return presented developers with significant challenges, not only with coding and validation but also from the sustained increase in the number of calls made by clients. We’ve all had to work through and resolve a substantial range of issues and problems throughout the year, particularly in late summer.

We are grateful for the collaborative approach you have taken to this endeavour and the personal support you have given HM Revenue & Customs (HMRC). It is very much appreciated.

Figures at 1 February 2009	2006-07	2007-08	2008-09
Agents, Internet	2,109,871	2,791,101	4,478,154
Individuals, Internet	787,937	912,627	1,378,310
Returns with attachments, Internet	11,608	90,148	770,249
Total Internet	2,909,416	3,793,876	5,773,512
Paper	4,928,343	4,198,786	2,161,931
Total (online + paper)	7,837,759	7,992,662	7,935,443
% online returns by agent	72.5%	73.6%	76.8%
Online percentage	37.1%	47.5%	72.8%

Figures at 1 February 2009	2006-07	2007-08	2008-09
Agent returns, HMRC's free-to-use product	158,764	229,914	393,924
Individual returns HMRC's free-to use product	679,591	762,915	1,296,555
Agent returns, 3rd party software product	1,950,168	2,559,563	4,084,230
Individual returns, 3rd party software product	107,236	144,159	81,755
Total agent returns	2,108,932	2,789,477	4,478,154
Total individual returns	786,827	907,074	1,378,310

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1046 errors

During the ‘final push’ leading to the 31 January Self Assessment filing peak, a number of developers reported an unusually high incidence of '1046 errors'. These arise when a user’s credentials cannot be authenticated by the Government Gateway. The cause is almost invariably 'finger trouble' – transposing two characters in the password; including a space in the UTR (Unique Taxpayer Reference); or mistaking the letter 'I' for the number '1'.

The improved ‘error trapping’ in software has helped enormously. We know of some examples where a <space> character is ‘forced’ in the on-screen UTR (to improve readability) but then automatically removed in the XML. Some of you told us that you tightened up your validation on these boxes during January, despite the pressure you were under. Thank you, HMRC appreciates your efforts as much as your clients will have done.

We have heard anecdotes suggesting that 'finger trouble' wasn’t always to blame. Clearly an agent’s User ID and password cannot have been wrong if nine of the ten returns in a batch were successfully submitted. Add to that automatically generated UTRs (subsequently verified in the XML) and it seems there were some true anomalies.

All the cases we investigated could be explained. It’s too late for this year of course, but we’d be interested to receive case details (ideally Online Services Helpdesk references) for any ‘oddities’ that appear to defy explanation. You can email details either to the Software Developers’ Support Team or to Tara Wilkie on the Carter Programme.

You may also find the attached overview of how authentication works for 'File Only' agent cases interesting.

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Penalties and reasonable excuse

Where customers advise us that they did not receive their Activation PIN before the 31 January deadline HMRC will treat this as a reasonable excuse for filing late if the customer can show that:

they registered for our online service on or before 31 January
they filed their return as soon as they could after 31 January

Customers will still receive a penalty notice because it is now too late to stop our systems issuing one. They will need to appeal against the penalty in writing but, as long as they meet the conditions described above, they will be treated as having a reasonable excuse for filing late and the penalty will be withdrawn.

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Pre–registration

In our October 2008 edition of the Notes we said we would be issuing letters containing Activation PINs to Self Assessment customers who had previously filed paper returns, had not filed by 31 October and who did not have an agent. This would have speeded up the registration process that customers must use to access our online services.

We decided not to take this approach following internal and external consultations, but we did send letters to this group of customers over a 10 day period in early December reminding them the paper deadline had passed. We also included a guide (PDF 1.53MB ) on how to register, which was short, easy to follow and incorporated screen shots illustrating what to do on each screen.

Our figures indicate that these letters and guides had a positive impact in getting unrepresented customers to file online, with applications to register peaking at 350k during December. Post 31 October we got significantly fewer paper filers than predicted. Our customers appear to have taken on board the advertising too, which is borne out by the online filing results at the 31 January deadline.

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Update delivered

The online processing of amended tax returns was fully automated from the end of October 2008.

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Update on future enhancements

From April 2009 the online Self Assessment service (including HMRC’s free online tax return) will allow returns for earlier years to be filed - the first year’s return to which this applies will be the tax return for the 2007-08 year of assessment.

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Collaborative approach to live issues

On 2 January 2009 we launched a three month trial of a new ‘fast track’ process for reporting problems with the ‘live’ online service. The trial will continue until 31 March 2009. If there is a system problem that has affected (or it seems probable that it will affect) at least 30 users in a 24 hour period then software developers can escalate it via a single call to the SDS team rather than individual customers having to contact HMRC’s Online Services Helpdesk. The aim is to speed up the reporting process.

Whilst it was not necessary to use this process during the Self Assessment peak as there were no major service issues, we will continue to run the trial until the end of March and evaluate it then.

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