HMRC technology issues can descend

Stay in view of the free updates

Simply subscribe to UK tax Myft Digest – it is delivered directly to your inbox.

Thousands of people who have achieved capital gains in 2024-25 risk penalties to pay less than they should be due to the failure to update HM revenue and customs programs to reflect the price increase in the autumn budget.

In the budget last year, Chancellor Rachel Reeves increased the capital profit tax rates from getting rid of all assets except for residential property and carried interest. The rates increased from 10 to 18 percent for the basic taxpayers and 20 to 24 percent for taxpayers with high prices, with a valid change from October 30, 2024.

However, the change came after the completion of the HMRC online deposit service for tax declarations. As a result, any complete accounts will be filled while filling the CGT section of the tax recognition if the assets disposal occurred on October 30, 2024 after or after.

Tax experts said that people who provide a tax on themselves, especially those who have gains from selling stocks, are likely to be arrested. This can affect tens of thousands of people, with tax data 2023-24 that show about 378,000 taxpayers who have CGT obligations.

David Wright, the technical official of the Tax Technician Association, a professional body, said that he is “inevitable” that taxpayers make mistakes.

He said: “Some of the affected taxpayers will not realize that a rate changes on October 30, 2024 will change the price when using the online deposit service in HMRC and they will fail to include the CGT modification number when offering their returns.”

“This may lead to questioning HMRC’s tax declaration, and may lead to an additional tax, along with the late payment interest and a penalty of up to 30 percent of any CGT replied.”

Aj Bell, Charlene Young, said that about half of all tax declarations use HMRC systems, instead of third -party software, to provide their returns.

“This is a big possible mistake in fermentation,” she said.

“There are two things here in which people are going unintentionally: the lack of reporting and payment (tax) and comes with the penalties.”

HMRC can impose penalties on up to 30 percent of the tax due to errors if they are considered due to neglect. The Tax Office has also confirmed that it will receive benefit on any CGT paid late, according to the Institute of Legal Accountants in England and Wales. The late HMRC’s late interest is imposed by 8 percent.

To address the potential problem, HMRC has published a calculator to modify the modification that may be necessary to approve the 2024-25 self-evaluation tax and will demand candidates online, when they fill their return.

Earlier this month, the Tax Office to write for people who have already submitted their tax approval 2024-25 but it seems that he made a mistake in calculating the CGT amount. Individuals who receive the message are required to verify their return using HMRC calculator and modify the return if it is incorrect within 30 days. If the number is correct, they will be given 30 days to call HMRC to confirm that the information is correct.

Wright added that the messages were useful in alerting people about this issue, but they will continue to lead to additional taxpayers. As in cases where there is no change in the tax acknowledgment, individuals will be asked to confirm this on HMRC.

Anyone who has CGT urged reporting to include the correct disposal dates for all CGT transactions on their return, to avoid HMRC examination dates to get rid of it before the budget day and therefore not affected.

Online submissions are scheduled to be submitted from the 2024-25 tax declaration by January 31, with paper requests on October 31.

HMRC rejected the criticisms that there was a mistake that was brewing, adding: “Self -evaluation customers will have everything they need to obtain their tax right. Online notes will be asked to use our CGT calculator, which takes into account the change of the mid -year rate and accompanied by instructions explaining how to use it.”