HMRC are now issuing statements to taxpayers ahead of the 31 January 2018 tax payment deadline.
Unfortunately, for a large number of trust taxpayers, HMRC’s calculation and statement is incorrect, resulting in HMRC demanding an incorrect amount.
HMRC’s Nottingham Trusts district is apparently aware of this issue, and is currently having to manually check and revise the tax calculation for those cases that are referred to it. Worryingly, there is no information at this stage on how HMRC are going to correct the position for cases that aren’t referred to it (e.g. unrepresented taxpayers).
The majority of HMRC errors appear to be for Trust cases, although we have come across a similar issue for some personal tax clients where the tax return was electronically submitted in June or July.
It is therefore important to check the HMRC statements carefully, to ensure that the correct amount of tax is paid at the end of January.