All Self Assessment customers need to file their 2016-17 return, pay their balance for 2016-17 and make their first payment for 2017-18 by 31 January 2018.

As you know each year there are a small number of customers who are affected by exclusions and who are therefore unable to file online or get an accurate Self Assessment income tax liability calculation for 2016-17. Our forecasts suggests that exclusions for 2016-17 will only impact a very small proportion of SA customers (a fraction of 1%)

In this instance customers should:

• file their Self Assessment by paper return, along with a completed reasonable excuse claim
• make a reasonable effort to estimate their income tax liability for 2016-17 based on the information they have
• pay their estimated balance for 2016-17 Self Assessment and make their first payment for 2017-18 by 31st January 2018.

Should their income tax liability calculation for 2016-17 be too low, or the deadline of 31 January be missed because of an exclusion, HMRC will not apply late filing, late payment penalties and/or interest. Where we have been unable to stop the automatic issue of these we will accept being affected by an exclusion as a reasonable excuse and the penalties will be withdrawn. From February 2018 we will contact those customers who have needed to estimate their balance payment to confirm their actual income tax liability.

Where a customer is uncertain if their circumstances match an exclusion and their software allows successful online submission, they should:

• still file their Self Assessment return online
• pay their estimated balance for 2016-17 Self Assessment and make their first payment for 2017-18 by 31st January 2018

HMRC will subsequently:

• identify any cases filed online where the calculation is incorrect
• make any required correction to the income tax liability calculation for 2016-17 and 2017-18 payment on account
• inform the customer of the correct income tax liability calculation for 2016-17 and any revision to 2017-18 payment on account
• advise when the revised amounts need to be paid
• inform customers that they will not have to pay late payment penalties and/or interest attributable to any additional amount arising from the correction if it is paid before the revised due date

Attached is the v9.0 of the Exclusions for 2016-17 which will provide all the known exclusions to date. Please note that this is for guidance only to give certainty and advise customers if they fall under an exclusion. As mentioned above, customers are advised to file online and HMRC will make the required correction to their income tax liability calculation for 2016-17 and 2017-18 payment on account.

For further information please ask your customers to speak to their tax advisor, or use our SA110 notes and SA150 How to fill in your tax return. Customers can also contact HMRC if they receive any penalties or accrue interest due to exclusions. We are aware that some of these issues will impact 2017-18 and we are currently devising a strategy to address these.