PERSONAL, BUSINESS AND TRUST TAX KNOWN ISSUES AND WORKAROUNDS 2008/09 VERSION NUMBER 2.4 VERSION NOTES Updated error messages RELEASE DATE 17 December 2009

DIGITA

Known Issues and Workarounds (2008/09) Version Number

Version Notes

1.0

Initial Document; Inclusion of HMRC Specials, Exclusions, and known workarounds as at 09/07/09

Released Date 22 December 2009

Contents 1. 

OVERVIEW

4.2  SA101 – Additional Information Pages 8 

3 

4.2.1 

1.1  Online Filing Manager – Submitted folder 3 

4.3  1.2 

HMRC – Service Availability

3 

2. 

HMRC PUBLISHED ERRORS Specials

4 

2.2 

Exclusions

4 

2.3 

3. 

Documents

NON-REFERENCED ERRORS 3.1.1 

Authentication Failure

4.4 

4.5 

4.6 

10 

FSE2

5 

4.6.3  Profit & Loss Account or Balance Sheet Detail 10 

5 

3.1.6 

Error: Postcode

4.6.4 

4.7 

SA103L – Lloyds

11 

11 

LUN50/LUN56

11 

4.7.2 

LUN9 – calculation problem

11 

SA104S – Partnership Short

12 

4.8.1 

7 

Error #6224 – FSE77 & FSE76

4.7.1 

4.8 

12 

SPS1

4.8.2  Error #6219 & Error #6207 – SPS7, SPS9, SPS14 12 

3.1.7  Error#6511: One set of Class IV NIC details 7 

4.8.3  Error #6216 & Error #6208 – SPS7, SPS9, SPS14 13 

3.1.8  No Response received, system failure, internal error 7 

4.9 

FIN4 to FIN10

10 

4.6.2  Profit & Loss Account or Balance Sheet Detail 10 

Error: ‘Filename’ has an invalid value 6 

4.1.1 

9 

SSE1

5 

3.1.5 

SA100 – Tax Return

8 

MOR31

SA103F – Self Employment Full

4.6.1 

3.1.4  Error: #6020: Submission must contain attachment 6 

4.1 

8 

4.5.2  Profit & Loss Account or Balance Sheet Detail 10 

3.1.3  Error: ‘Other Information space’ has an invalid element 6 

PEOPLE (SA100 SERIES)

8 

SA103S – Self Employment Short 9 

4.5.1 

3.1.2  Error: ‘Line’ shortline element has an invalid value 5 

4. 

8 

8 

EMP4

SA102M – Ministers of Religion

4.4.1 

4 

2.1 

SA102 - Employment

4.3.1 

1.3  Tax return submission receipt reference number (previously 'IR Mark') and client approval of returns – updated September 2009 3 

Box1A - AOI5, AOI7, AOI9, FOR44

7  7 

SA104F – Partnership - Full

4.9.1 

FPS1

15 

4.9.2 

FPS39

15 

4.9.3  Error #6214 & Error #6202 – FPS7, FPS9, FPS14

7 

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15 

15 

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4.9.4  Error #6212 & Error #6203 – FPS7, FPS9, FPS14

4.10 

SA105 – Land & Property

4.10.1 

4.11 

SA106 – Foreign

4.11.1 

4.12 

PRO14

TRU19

17 

5.1.3  General – Turnover in excess of £15million

25 

18 

5.1.4 

N2.11 / N1.11

25 

5.1.5 

N2.11A / N1.11A

25 

5.1.6 

N2.30 / N1.30

25 

5.1.7 

N1.27 must equal 7.34

25 

5.1.8 

N1.17 must equal 1.15 – 1.11 + 1.14 26 

5.1.9 

Trusts/Estates (SA900)

18  18 

SA108 – Capital Gains

18 

4.14 

SA109 – Non Residence

19 

4.15 

4.15.1 

4.16 

5.  5.1 

5.2 

CAL1/CAL2

CAL3 – Student Loan

PARTNERSHIPS (SA800) SA800

SA900

5.2.1 

Error 6876 / 6879 – NRD10 and 19 

SA110 – Tax Calculation

23 

17 

4.13 

4.14.1  NRD14

General – More than one trade

5.1.2  General – More than one Accounting Period 23 

Invalid Child Element – Country Code 18 

SA107 – Trusts

4.12.1 

5.1.1  16 

5.3  19  19 

21 

23  23 

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27 

27 

Error: The ‘Beneficiary’ element

SA905

27 

27 

5.3.1 

Error: The 'Name’ element

27 

5.3.2 

Error: The element 'PersonHasDied' 27 

5.3.3  Error: The element 'PersonHasBecomeEntitled'

28 

5.3.4  Error: The element 'PersonHasBecomeNonResident'

28 

5.3.5  Error: The element 'ChargeableOnSettlor'

28 

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1. Overview The purpose of this document is to assist you with resolving any online filing errors that you encounter. In addition to the published guidance from HMRC, there are a number of situations that have been encountered which are yet to be published. However, any workaround specified here, which goes against the tax return notes, has been cleared with HMRC prior to inclusion in this document. The document is split into three main errors; Section 2: HMRC published errors Section 3: Non-referenced errors (i.e. no specific box number is referred to in the error message) Sections 4-6: Form errors (i.e. a box number is referred to in the error message) If you encounter an issue that is not covered by this document, please export a copy of the client (This can be done via the software; ensuring the client is closed (File > Close), then go to File > Import/Export > Client Transfer Manager > Export) and email the resulting file to [email protected] together with details of the error message you are receiving. This document will be updated periodically, and therefore we recommend you save the document location to your ‘Favourites’, rather than saving the actual document file to your computer.

1.1 Online Filing Manager – Submitted folder If you are having problems with a submission for which you have not received a response from the HMRC (this is generally a result of the HMRC server not sending a response to the software. This tends to happen when the HMRC server is encountering problems) you need to do the following; •

Go to Tools > Online Filing Manager.

•

Highlight the submitted folder and press the icon called ‘Check All/Check Status of Online Filing Submissions’. You should find this will now move your client into either the accepted or rejected folder.

•

If the client moves nowhere and remains in submitted, then retry periodically for 2 days. If after this time, you are still unsuccessful can you export the client (as above) and email the file to [email protected] together with details of the problem.

1.2 HMRC – Service Availability If you are receiving having problems submitting returns, it is worth checking HMRC’s Service Availability and Known Issues pages to ensure that they are not currently experiencing a problem with their Servers or that they have not taken them offline for routine maintenance. HMRC Service Availablity HMRC Service Issues

1.3 Tax return submission receipt reference number (previously 'IR Mark') and client approval of returns – updated September 2009 As you will be aware, all SA returns filed online must include a 32-character 'IR Mark'. When a return is produced that will be filed online, a background task occurs that converts all of the entries on the return and any attachments to an ‘XML’ message. It is this XML message that is eventually encrypted and submitted to HMRC via the Government Gateway. The IR Mark is calculated from the underlying XML using a complex algorithm defined by HMRC, and is effectively a unique ‘checksum’ of the entries on the actual return. It is important to remember that the purpose of the IR Mark 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. It is not intended to provide definitive proof that the return your client signed is the same one that was sent, although many of you do use the IR Mark as a tool in this way. There is no random element to the IR Mark calculation. Therefore, if you amend an entry on the return, the IR Mark will change. If you remove that amendment, the IR Mark will revert to what it was previously.

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Whenever we provide an update to Digita Personal Business & Trust Tax, as well as additional functionality, new features and bug fixes, this software will also include changes to deal with known issues or further HMRC guidance that has been published. Whilst we make every effort to keep changes to a minimum, it is not unusual for IR Marks to change as a result of software updates when that update is installed. The recent upgrade to Digita Personal Business & Trust Tax 11.6 included, among other changes, an update to the production of the XML message where there is an overflow report attached to the return. In this situation there is no visible or material change to the actual return or tax computation. However, since the IR Mark is calculated from the underlying XML, the IR Mark itself may still change. This will potentially affect returns that are either out with your clients for approval / signature or any that have come back from your client which have yet to be actually filed. Guidance published by HMRC in September 2009 states: 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. The above statement clarifies the previous guidance in so much that it confirms only that you may wish to use the IR Mark, now referred to as the submission receipt reference number (SRRN), implying that it is not compulsory to do so.

2. HMRC published errors 2.1 Specials These are situations where there is a workaround to ensure successful filing. HMRC’s latest guidance indicates that where you are unable to file online for any of the reasons listed, the return may be submitted on paper and should be accompanied by a claim for reasonable excuse. Any paper return submitted must conform to the ‘normal’ rules for paper returns (even if computer generated) – eg it must hold a valid signature. Finally, HMRC have also confirmed that where a recommended workaround causes on online return to be submitted with an entry that is not strictly correct, they will not take action on that particular entry for that reason alone provided that the inaccuracy is in accordance with the published workaround and purely to facilitate online filing.

2.2 Exclusions These are situations where the tax return must be filed by paper. HMRC published guidance has confirmed that where a return cannot be submitted online because of any of the reasons listed on the ‘Exclusions’ document, provided a paper return is delivered on or before 31 January 2010 they 4 of 28

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will accept that the taxpayer had a reasonable excuse for failing to file a paper return by the normal 31 October deadline. The return should be accompanied by a claim for reasonable excuse. Any paper return submitted must conform to the ‘normal’ rules for paper returns (even if computer generated) – eg it must hold a valid signature. Finally, HMRC have also confirmed that where a recommended workaround causes on online return to be submitted with an entry that is not strictly correct, they will not take action on that particular entry for that reason alone provided that the inaccuracy is in accordance with the published workaround and purely to facilitate online filing.

2.3 Documents SA100: http://www.hmrc.gov.uk/ebu/2009-spec-indi.pdf (Specials) SA100: http://www.hmrc.gov.uk/ebu/2009-exc-indi.pdf (Exclusions) SA800: http://www.hmrc.gov.uk/ebu/2009-se-partner.pdf (Specials and Exclusions) SA900: http://www.hmrc.gov.uk/ebu/2009-se-trust.pdf (Specials and Exclusions)

3. Non-referenced Errors These are errors that do not make reference to a particular box on the tax return.

3.1.1 Authentication Failure Error message

Reason

Authentication failure. The supplied user credentials failed validation for the requested service.

Either;

Workaround

•

The UTR for the client is invalid

Check the UTR check box (Client Details>HMRC) is ticked and greyed out

•

The UTR is not displayed on the tax return

Check Other Return Information, Client Details, HMRC. If not displayed, tick “Edit current year details”, and then untick (clicking on Yes when prompted)

•

Your user ID and/or HMRC password is incorrect

Contact HMRC online helpdesk on 0845 6055 999

3.1.2 Error: ‘Line’ shortline element has an invalid value Error message

Reason

Workaround

Error: The 'http://www.govtalk.g ov.uk/taxation/SA/SA 100/08-09/1:Line' element has an invalid value according to its data type.

Line is used in a number of areas;

This error usually means;

OR Error: The 'http://www.govtalk.g ov.uk/taxation/SA/SA 100/0809/3:OtherInformatio nSpace' element has

•

The length of the data submitted is too long (usually a maximum characters of 28 is specified)

•

There is an invalid character. The following are valid;

•

Home address

•

Nominee address (for repayment purposes)

•

Tax adviser address

•

Address of person signing

•

Numeric (0 to 9)

•

Trading address

•

Alpha (A to Z and a to z)

•

Partnership address

•

&’()*,-.@£

•

Partner’s address for an SA800

•

If error refers to shortline element, it will be the last line of address (most likely Partner on the partnership

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an invalid value according to its data type.

statement.

3.1.3 Error: ‘Other Information space’ has an invalid element Error message

Reason

Workaround

Error: The 'http://www.govtalk.g ov.uk/taxation/SA/SA 100/0809/3:OtherInformatio nSpace' element has an invalid value according to its data type.

An invalid character has been used in white space notes.

There is an invalid character in a white space note (bear in mind that this could be any of the white spaces on the return). The following are valid; •

Numeric (0 to 9)

•

Alpha (A to Z and a to z)

•

&’()*,-.@£

3.1.4 Error: #6020: Submission must contain attachment Error message

Reason

Workaround

Error #6020: Submission must contain at least one attachment or an entry in the whitespace if Capital Gains Summary is present

In order to submit a tax return containing CGT pages via Online Filing, you will need to have either the tax computations explained in the white space of the return or an attachment to the return showing the calculations.

If, for any reason, the converting of our reports to PDF does not work, or you would rather attach your own computation to the tax return, this is relatively straight forward. However, you cannot use the Digita PDF Converter (our license only covers use within the software).

If you wish to attach the computations, this must be a PDF document and be attached via Edit > Schedule Editor > Other Return information > Online Filing Attachments > Add. You can convert the system generated computation reports by viewing the report, right clicking and choosing “Save Report to PDF file…”. Once saved, ensure this is then attached as outlined above.

Please note that whilst total attachments should be no larger than 5MB, we are aware of instances where attachments in excess of 2MB can cause problems and severe delays with submission, and would recommend keeping attachment size as small as possible to aid submission.

If you have no other PDF Writers installed (i.e. they should be listed in the dropdown list of printers) you do require pdf conversion software. I personally use Cute PDF (www.cutepdf.com) which is a free utility that behaves like a printer (it appears in your list of printers, so anything you can print can instead be converted into a pdf file).

If you are using a scanner rather than a PDF printer for your attachment, then we suggest using a medium/low DPI quality setting in order to maintain a sufficiently sized attachment.

3.1.5 Error: ‘Filename’ has an invalid value Error message

Reason

Workaround

Error: The 'Filename' attribute has an invalid value according to its data type.

The pdf document attached to the tax return has an invalid character. Possible reasons are;

Delete the attachment in Other Return Information, Online Filing Attachments.

•

The use of a character other than alpha-numeric or & ’ ( ) * , - . @ £. Underscore ( _ ) is a possible cause.

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Rename the file Re-attach the file

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•

The file extension is “.PDF” instead of “.pdf”

NB: the IRMark will change if the attachment is changed.

3.1.6 Error: Postcode Error message

Reason

Workaround

Error: The 'http://www.govtalk.g ov.uk/taxation/SA/SA 100/0708/1:PostCode' element has an invalid value according to its data type.

Any postcode entered must be in the standard UK format (i.e. AA11 1AA).

HMRC Special 9 If the postcode is for a foreign address, include it as part of the address, rather than entering as a postcode.

3.1.7 Error#6511: One set of Class IV NIC details Error message

Reason

Workaround

Error #6511: There should only be an entry in one set of Class 4 NIC boxes on the return.

Where multiple trades/partnerships/underwriters are present, any adjustments applied to Class IV NIC must be made on one schedule only.

HMRC Special 11

These errors generally refer to problems with HMRC service and are normally resolved by resubmitting the return

If you are getting the message ‘No Response Received’, it is worth checking the size of any attachments. Whilst HMRC official limit for attachments is 5MB, in practice, any attachments larger than 1Mb will take a long time to submit.

3.1.8 No Response received, system failure, internal error

Workaround implemented in Personal Tax V11.4 et sec.

4. People (SA100 Series) 4.1 SA100 – Tax Return 4.1.1 FIN4 to FIN10 Error message

Reason

Workaround

Example

The most likely cause for these errors is that you have elected for a repayment to be made to yourselves as agent (or another nominee) and have not completed the bank account details. Unfortunately it appears that HMRC will not accept submissions this year without these details.

Alternatively, exclude the refund details from the submitted tax return, and contact the local HMRC office to request repayment after submission.

FIN5. If box FIN5 (Account holder or nominee name) is present, then boxes FIN4 (Bank or building society name), FIN6 (Branch sort code) and FIN7 (Account number) must also be present.

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4.2 SA101 – Additional Information Pages 4.2.1 Box1A - AOI5, AOI7, AOI9, FOR44 Error message

Reason

Workaround

The submission of this document has failed due to departmental specific business logic in the Body tag.

Box1A is the figure calculated by Digita Personal Tax for Top Slicing Relief, and is a hidden box which is not displayed on the form. When you enter one instance of a Life Assurance Gain, and the number of complete years is less than 1 (i.e. is zero), we cannot write “0” to either AOI5, AOI7, AOI9 or FOR44 because these boxes cannot accept zero. When these boxes are blank, HMRC validation assumes there are multiple instances, and therefore expects a figure of Top Slicing Relief. Digita Personal Tax does not calculate Top Slicing Relief in this instance – as the number of years is not greater than one, and therefore a Top Slicing Relief calculation is inappropriate

None published.

If all of boxes AOI5, AOI7, AOI9 and FOR44 are absent, Box1A must be present.

However, it is our understanding that if you enter “1” for “Complete years since last chargeable event”, the computation of liability will be unaffected, and HMRC will no longer expect a calculated figure of Top Slicing Relief if Box1A.

4.3 SA102 - Employment 4.3.1 EMP4 Error message

Reason

Workaround

Box EMP4 is mandatory

There is no PAYE reference number on the SA102

Ensure this is entered via the Employment Income schedule. If the PAYE reference is unknown, you should contact HMRC Online Helpdesk prior to submission to discuss any possible workaround.

•

HMRC Special 17

Foreign Employers

If the employer is a foreign employer, please enter a PAYE reference of “000/N”

4.4 SA102M – Ministers of Religion 4.4.1 MOR31 Error message

Reason

Workaround

There is incorrect validation on box MOR31 where it is forced to be present if there is a figure in any of the boxes MOR26 – MOR30. MOR31 should only be completed where total income, benefits and expenses exceed £8,500 and either MOR5 or MOR13 are completed.

HMRC Exclusion 8 Where there is an entry in box MOR26, then either box MOR27 or MOR31 need to be completed. Dealt with automatically by versions 11.4 et sec.

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4.5 SA103S – Self Employment Short 4.5.1 SSE1 Error message

Reason

Workaround

Box SSE1 (Business description) is mandatory.

Business description has not been specified. This field is mandatory

Please enter a business description;

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•

Sole Trade: add a description in the ‘Description’ field on the Details tab

•

Business Tax: add a description in the “Description field in Business details

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4.5.2 Profit & Loss Account or Balance Sheet Detail Error message

Reason

Workaround

Example Error: The 'http://www.govtalk.go v.uk/taxation/SA/SA10 0/08-09/3:Turnover' element has an invalid value according to its data type.

A figure in the Profit and Loss or Balance Sheet has been entered as a negative amount – in this example, Turnover.

HMRC are not able to accept such entries and the figure will need to be moved to another heading where it can be entered as a positive.

4.6 SA103F – Self Employment Full 4.6.1 FSE2 Error message

Reason

Workaround

Box FSE2 (Business description) is mandatory.

Business description has not been specified. This field is mandatory

Please enter a business description; •

Sole Trade: add a description in the ‘Description’ field on the Details tab

•

Business Tax: add a description in the “Description field in Business details

4.6.2 Profit & Loss Account or Balance Sheet Detail Error message

Reason

Workaround

Example

A figure in the Profit and Loss or Balance Sheet has been entered as a negative amount – in this example, Turnover.

HMRC are not able to accept such entries and the figure will need to be moved to another heading where it can be entered as a positive.

Error: The 'http://www.govtalk.g ov.uk/taxation/SA/SA 100/0809/3:Turnover' element has an invalid value according to its data type.

4.6.3 Profit & Loss Account or Balance Sheet Detail Error message

Reason

Workaround

Error #6836: Net profit or loss FSE95 must equal the amount entered in FSE46/FSE47

The profit entered on the Profit & Loss dialog does not equal that entered on the Balance Sheet.

Ensure that the same figure is used on both dialogs.

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4.6.4 Error #6224 – FSE77 & FSE76 Error message

Reason

Workaround

Error #6224: The amount in box "Loss of year set against other income" (FSE77) exceeds the amount in box "Adjusted loss for the year" (FSE76). Please check

This appears to be a problem with HMRC’s validation, whereby they are unable to accept self employment pages where the losses in FSE76 and FSE77 differ, usually as a result of a UITF40 adjustment.

HMRC Exclusion 19 No published workaround, return must be filed on paper

4.7 SA103L – Lloyds 4.7.1 LUN50/LUN56 Error message

Reason

Workaround

Error #6082: There is an entry in box "Total foreign tax" (LUN50). Please complete box "Foreign tax claimed as deduction" (LUN56).

This is due to a problem with HMRC’s validation and will arise where you have a Lloyds profit (posting to LUN51) and foreign tax in LUN50.

HMRC Exclusion 5 No published workaround, return must be filed on paper

4.7.2 LUN9 – calculation problem Error message

Reason

Workaround

The total of LUN6 + LUN7 + LUN8 + LUN9 is used in the calculation, however HMRC’s instructions for completing LUN9 advise that the figure should be LUN8 ÷ 10. This means that 10% of the amount in LUN9 is included twice in the calculations.

HMRC Exclusion 13 Where you have notional tax credits on non-qualifying distributions, you can either: •

Leave LUN9 blank, or

•

Move the entries from LUN8 and LUN9 to LUN6 and LUN7 instead.

In either case, you should add a note to the White Space to explain what you have done. Alternatively, you can file on paper.

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4.8 SA104S – Partnership Short 4.8.1 SPS1 Error message

Reason

Workaround

Box SPS1 is mandatory

There is no partnership reference number on the SA104

Ensure this is entered via the Partnership (Client Details, HMRC)

•

Foreign Partnerships (which do not have a UTR)

In 2007/08 this was dealt with as a ‘Special’ HMRC advised to enter a UTR of “9999999999”. However, this advice has now been removed, and users will need to contact HMRC for further guidance.

4.8.2 Error #6219 & Error #6207 – SPS7, SPS9, SPS14 Error message

Reason

Workaround

Error #6219: The sum of ("Share of partnership profit or loss" (SPS7) + "Adjustment for basis period" (SPS8) + "Change of accounting practice adjustment" (SPS9) – ("Foreign tax claimed as deduction" (SPS11) + "Overlap relief used" (SPS12))) is negative or zero, and "Averaging adjustment" (SPS10) is absent or zero. The amount in box "Adjusted profit for year" (SPS14) should equal zero or must be absent. Please check.

This appears to be a problem with HMRC’s validation, whereby they are unable to accept partnership pages with a loss in SPS7 and either an entry in SPS9 (adjustment on change of basis) or SPS14(UITF40 adjustments).

HMRC Exclusion 19 No published workaround, return must be filed on paper

AND/OR Error #6207: The sum of ("Share of partnership profit or loss" (SPS7) + "Adjustment for basis period" (SPS8) + "Change of accounting practice adjustment" (SPS9) – ("Foreign tax claimed as deduction" (SPS11) + "Overlap relief used" (SPS12))) is

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negative. Please complete box "Adjusted loss for year" (SPS19) with the positive equivalent.

4.8.3 Error #6216 & Error #6208 – SPS7, SPS9, SPS14 Error message

Reason

Workaround

Error #6216: The amount in box "Adjusted profit for year" (SPS14) must equal ("Share of partnership profit or loss" (SPS7) + "Adjustment for basis period" (SPS8) + "Change of accounting practice adjustment" (SPS9) + "Averaging adjustment" (SPS10) – ("Foreign tax claimed as deduction" (SPS11) + "Overlap relief used" (SPS12))) if the sum of ("Share of partnership profit or loss" (SPS7) + "Adjustment for basis period" (SPS8) + "Change of accounting practice

This appears to be a problem with HMRC’s validation, whereby they are unable to accept partnership pages with a loss in SPS7 and either an entry in SPS9 (adjustment on change of basis) or SPS14(UITF40 adjustments).

HMRC Exclusion 19

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No published workaround, return must be filed on paper

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adjustment" (SPS9) – ("Foreign tax claimed as deduction" (SPS11) + "Overlap relief used" (SPS12))) is positive. Please check AND/OR Error #6208: The sum of ("Share of partnership profit or loss" (SPS7) + "Adjustment for basis period" (SPS8) + "Change of accounting practice adjustment" (SPS9) – ("Foreign tax claimed as deduction" (SPS11) + "Overlap relief used" (SPS12))) is greater than or equal to zero. The entry in box "Adjusted loss for year" (SPS19) must equal 0. Please check

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4.9 SA104F – Partnership - Full 4.9.1 FPS1 Error message

Reason

Workaround

Box FPS1 is mandatory

There is no partnership reference number on the SA104

Ensure this is entered via the Partnership (Client Details, HMRC)

•

Foreign Partnerships (which do not have a UTR)

In 2007/08 this was dealt with as a ‘Special’ HMRC advised to enter a UTR of “9999999999”. However, this advice has now been removed, and users will need to contact HMRC for further guidance.

4.9.2 FPS39 Error message

Reason

Workaround

Incorrect HMRC validation means that FPS39 (Taxable profit after adjustments and losses) must be completed in situations where it doesn’t need to be.

HMRC Exclusion 9 Where there is an overall loss and no profit to enter in FPS39, you need to enter a zero in FPS39 or file on paper. Dealt with automatically by version 11.4 et sec

4.9.3 Error #6214 & Error #6202 – FPS7, FPS9, FPS14 Error message

Reason

Workaround

Error #6214: The sum of ("Share of partnership profit or loss" (FPS7) + "Adjustment for basis period" (FPS8) + "Change of accounting practice adjustment" (FPS9) – ("Foreign tax claimed as deduction" (FPS11) + "Overlap relief used" (FPS12))) is negative or zero, and "Averaging adjustment" (FPS10) is absent or zero. The amount in box "Adjusted profit for year" (FPS14) should equal zero or must be absent. Please check.

This appears to be a problem with HMRC’s validation, whereby they are unable to accept partnership pages with a loss in FPS7 and either an entry in FPS9 (adjustment on change of basis) or FPS14(UITF40 adjustments).

HMRC Exclusion 19 No published workaround, return must be filed on paper .

OR Error #6202: The 15 of 28

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sum of ("Share of partnership profit or loss" (FPS7) + "Adjustment for basis period" (FPS8) + "Change of accounting practice adjustment" (FPS9) – ("Foreign tax claimed as deduction" (FPS11) + "Overlap relief used" (FPS12))) is negative. Please complete box "Adjusted loss for year" (FPS19) with the positive equivalent.

4.9.4 Error #6212 & Error #6203 – FPS7, FPS9, FPS14 Error message

Reason

Workaround

Error #6212: The amount in box "Adjusted profit for year" (FPS14) must equal ("Share of partnership profit or loss" (FPS7) + "Adjustment for basis period" (FPS8) + "Change of accounting practice adjustment" (FPS9) + "Averaging adjustment" (FPS10) – ("Foreign tax claimed as deduction" (FPS11) + "Overlap relief used" (FPS12))) if the sum of ("Share of partnership profit or loss" (FPS7) + "Adjustment for basis period" (FPS8) + "Change of accounting practice adjustment" (FPS9) – ("Foreign tax claimed as deduction" (FPS11) + "Overlap relief used" (FPS12))) is positive. Please check

This appears to be a problem with HMRC’s validation, whereby they are unable to accept partnership pages with a loss in FPS7 and either an entry in FPS9 (adjustment on change of basis) or FPS14(UITF40 adjustments).

HMRC Exclusion 19 No published workaround, return must be filed on paper .

OR Error #6203: The sum of ("Share of

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partnership profit or loss" (FPS7) + "Adjustment for basis period" (FPS8) + "Change of accounting practice adjustment" (FPS9) – ("Foreign tax claimed as deduction" (FPS11) + "Overlap relief used" (FPS12))) is greater than or equal to zero. The entry in box "Adjusted loss for year" (FPS19) must equal 0. Please check

4.10 SA105 – Land & Property 4.10.1 PRO14 Error message

Reason

Workaround

Self calculation case. The total tax due in box [CAL1/CAL2] does not agree with the calculated value of £x.xx. The difference is £a.aa. Please check.

Where:

HMRC Exclusion 7

•

there is a loss in PRO14, and

•

the client is a student loan borrower, and

•

total unearned income exceeds £2,000

No published workaround. Return must be filed on paper.

HMRC’s calculations will be incorrect and will over-charge the calculation of student loan repayments due. Also, where: •

there is a loss in PRO14, and

•

the client has student loans, and

•

has income from employment or pensions

•

there is no unearned income

HMRC’s calculations will be incorrect and ignore the property loss when calculating student loan repayments due.

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4.11 SA106 – Foreign 4.11.1 Invalid Child Element – Country Code Error message

Reason

Workaround

Error: The element 'IncomeSource' in namespace 'http://www.govtalk.g ov.uk/taxation/SA/SA 100/08-09/3' has invalid child element 'IncomeBeforeTax' in namespace 'http://www.govtalk.g ov.uk/taxation/SA/SA 100/08-09/3'. List of possible elements expected: 'http://www.govtalk.g ov.uk/taxation/SA/SA 100/0809/3:CountryCode'.

You are missing one (or more) three letter country codes on the Foreign Pages.

You will need to open each foreign income schedule, ensure that you select a country from the dropdown list and click OK. This should then ensure that the appropriate code appears on the return.

4.12 SA107 – Trusts 4.12.1 TRU19 Error message

Reason

Workaround

Self calculation case. The total tax due in box [CAL1/CAL2] does not agree with the calculated value of £x.xx. The difference is £a.aa. Please check.

Trust Income – box TRU19. Where you have a life assurance gain taxed at 22%, HMRC’s guidance indicates that they should be included in a white space additional note rather than in box TRU19. However, this then means that they will not be included in the calculation.

HMRC Special 28 In circumstance where notional tax will not be refunded, the income should be entered in box TRU20 (income taxed at 22%) rather than TRU19 (non repayable basic rate). HMRC Exclusion 6 In circumstances where some or all of the notional tax will be refunded, the return must be filed on paper.

4.13 SA108 – Capital Gains No known issues at present.

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4.14 SA109 – Non Residence 4.14.1 Error 6876 / 6879 – NRD10 and NRD14 Error message

Reason

Workaround

Error #6879: There is an entry in box "Not resident in UK" (NRD1). Please complete box "Number of days in UK since 5 April 2004 or leaving" (NRD14).

Due to an error in HMRC validation, when an SA109 is completed, NRD10, and NRD14 must be present

HMRC Special 29 Where NRD1 is ticked (where the client is non resident) you should enter 1 in boxes 10 and 14 and add a white space note.

And/or Error #6876: There is an entry in box "Not resident in UK" (NRD1). Please complete box "Number of days spent in UK" (NRD10).

4.15 SA110 – Tax Calculation 4.15.1 CAL1/CAL2 Error message

Reason

Workaround

Self calculation case. The total tax due in box [CAL1/CAL2] does not agree with the calculated value of £x.xx. The difference is £a.aa. Please check.

There are various possible reasons for this error; Life Assurance Gains Taxed at 10% There is an issue where the Life assurance Gains are fully/partially taxed at 10% but HMRC allow the full amount of notional (20%) tax in the computation. We are currently awaiting further clarification from HMRC on this issue.

None published.

If you agree with HMRC  computation, use the ‘enable  editing‘ facility to amend box  CAL1/CAL2 (on form SA100) to  the lesser liability  ‐ or                      If you disagree with HMRC and  believe the notional credit  should not be allocated against  other income, file by paper  with a view to challenging  HMRC should they ‘repair’ the  liability.   

Multiple Life Assurance Gains Where there are a large number of Life Assurance Gains, it is possible that the Top Slicing Relief calculated by Digita Personal Tax is different to the HMRC calculated figure. This is due to rounding (we calculate each instance to the nearest penny, HMRC round to the nearest pound.

None Published The only work around is to enable editing of the tax return (with the tax return on screen, go to Form>Enable Editing) and manually change CAL1/CAL2 to the HMRC calculated value. In a later release of the software, we will display the

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Error message

Reason

Workaround

Employment expenses greater than income

None published.

Where employment expenses exceed income received, in line with Digita restricts the expenses in the computation, HMRC server does not apply this restriction.

Blind Persons Allowance When claiming Blind Persons Allowance, you must complete the date of registration AND the local authority. Without this, the relevant information will not appear on the return and HMRC will not allocate Blind Persons Allowance in their computation. Non Residence and Split Year Treatment Where split year treatment is claimed on return, in line with ESC-A11 Digita DOES NOT apply excluded income rules in the tax computation. HMRC however do apply the excluded income treatment

A ) Do not enter expenses greater than the income via the employment dialog, or B ) - use the enable edit facility to reduce the expenses in boxes 17 - 20 on SA102, page E2 to a level not greater than the employment income. None published. Ensure Local Authority field is completed.

None published. A) If you agree with HMRC computation, use the ‘enable editing‘ facility to amend box CAL1/CAL2 (on form SA100) to the lesser liability - or B) If you disagree with HMRC and believe the Excluded Income rules should not apply, file by paper with a view to challenging HMRC should they ‘repair’ the liability.

PPP/RAP and relevant earnings Where your client has paid PPP/RAP contributions in the year, you must ensure that in the employment/self employment/Partnership/FHL dialog, the tick box is selected to 'Include in relevant UK earnings for pensions'. Higher Rate Tax / Age Allowance / Foreign Dividends Where your client is Higher Rate Taxpayer or borderline age allowance ( where Age Allowance is being partially restricted), and has foreign dividends of under £300 but where Foreign Tax Credit relief is due, will fail

None published. Enter 1p Special Withholding Tax on the Foreign dividends schedule to ‘force’ the dividend onto Foreign pages rather than page TR3. Then use the ‘enable editing’ facility to remove the rogue 1p from the Foreign Supplementary pages.

Income from Trusts / Estates If you overwrite the automatically populated tax credit values, Digita Computation will not match HMRC’s

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Do not overwrite automatically populated tax figures for Income from Trusts / Estates.

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Error message

Reason

Workaround

Where:

HMRC Exclusion 7

•

there is a loss in PRO14, and

•

the client is a student loan borrower, and

•

total unearned income exceeds £2,000

No published workaround. Return must be filed on paper.

HMRC’s calculations will be incorrect and will overcharge the calculation of student loan repayments due. Also, where: •

there is a loss in PRO14, and

•

the client has student loans, and

•

has income from employment or pensions

•

there is no unearned income

HMRC’s calculations will be incorrect and ignore the property loss when calculating student loan repayments due. Where you have entries of greater than zero in any of the boxes FOR43, AOI4, AOI6 or AOI8 and there is no higher rate tax charged on Non savings, Savings income or Dividend income, HMRC are incorrectly calculating top Slicing Relief where there is no higher rate tax charged.

HMRC Exclusion 21 No published workaround. Return must be filed on paper.

This means that the amount calculated does not agree and it is not possible to file on line. Where your client is liable for Student Loans and who have unearned income over £2000 which includes a foreign dividend up to £300, HMRC will not have the foreign dividend included in the calculation of the Student Loan Repayment if they enter the foreign dividend on main tax return.

HMRC Exclusion 17

Taxpayers will be unable to file online where they claim remittance basis but are still entitled to personal allowances under a double taxation treaty.

HMRC Exclusion 14

Taxpayers who fall into this category must therefore complete the foreign schedule to return their dividends or file a paper return.

No published workaround. Return must be filed on paper

4.16 CAL3 – Student Loan Error message

Reason

Workaround

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The Student Loan Repayment due entered in box [CAL3] does not agree with the calculated value of ÂX.XX. Please check

An incorrect amount of Student Loan repayment due has been entered in box 3, SA110

The Automatic calculation of Student Loan Repayments in now supported from version 11.6. Please check that you have an automated value for Student Loans Due. ( Other Return Information > Miscellaneous Adjustments)

Error #6158: Box "Student loan repayment due" (CAL3) completed including an entry of zero. Box "Income contingent student loan notification" (SLR1) must also be completed. Please check.

An entry for Student Loan Repayment deducted via PAYE has been made in the Employment schedule but box 1, page 2 of the SA100 has not been ticked.

Tick appropriate box for Student loan notification received. (Other Return Information > Miscellaneous Adjustments).

4.14.2 CAL13 Error message

Reason

Workaround

Error #6596: Box "Increase in tax from adjustment to earlier years" (CAL13) completed, box "Post cessation or other business receipts" (AOI14) must also be completed. Please check.

It appears that this is an error brought forward from 2007/08 where there is an entry in CAL13, an entry is also expected in AOI14 (amount of post cessation or other business receipts)

HMRC Exclusion 15. Although this error appears, on the Exclusions list and can be filed on paper, HMRC have also published a workaround as below. If you choose to follow the workaround you will need to make an entry in boxes 14 and 15 on page 1 of the Addition Information pages. To do this you will need to go to Edit > Schedule Editor > Schedule D VI Receipts > New. Select the type 'Business Receipts Taxed Early Year' and enter 0.01 in the 'Post cessation or other business receipts' box and select 2007/08 in the year box below. This issue can also be triggered where profit averaging has been selected for the year.

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5. Partnerships (SA800) 5.1 SA800 5.1.1 General – More than one trade At the moment Digita Personal Business and Trust Tax does not support partnerships with multiple trades. This is in line with HMRC not currently supporting additional trades as per HMRC Special 2: “Only one Main Partnership tax return can be submitted. This should be for the trade with the largest turnover. Paper schedules, including the corresponding Partnership and Paper Statements for the other trade(s) should be submitted as an attachment” To comply with their suggested workaround, you will need to do the following:COMPLETING EXTRA TRADE PAGES Create an additional partnership return, with the same UTR as the main partnership and post the additional trade details and profit split as necessary. You will need to save pages 2, 3, 4, 5 and the partnership statement as a PDF document. This will ensure that the partner’s individual returns include 2 partnership statements, and 2 lots of profit / loss as necessary. There will be no requirement to file this additional partnership online, we are creating it purely to generate the additional partnership trade pages and statement to attach to the main partnership return.

MAIN PARTNERSHIP RETURN. This can be completed as usual, posting income and expenses of the main trade and completing the partnership statement. ATTACHING THE ADDITIONAL PAGES AS A PDF Finally, you will need to attach the ‘additional’ SA800 trade pages as a PDF document in order for the return to file. You will need a PDF printer to do this. (See www.cutepdf.com for a free PDF printer.) Once saved as a PDF, these can be attached via Edit > Schedule Editor > Other Return Information. Select the Online Filing Attachments tab. (If running a network installation with numerous users accessing the software, you must save the PDFs and attach to the software from a shared location/drive accessible to all). Once done, you should now have additional trade pages saved as a PDF, profits posted correctly on the partnership statement, and correct postings automatically transferred to the partners individual tax return partnership supplementary pages SA104 – (i.e. the main trade, and the second ‘additional’ trade partnership pages).

5.1.2 General – More than one Accounting Period Per HMRC Special 3 you are not able to submit more than one accounting period: “The Main Partnership tax return should be completed with details for the latest accounting period. However, only one set of Partnership Trading pages should be completed. Details of additional accounting periods should be submitted as an attachment.” You will need to attach the additional trade pages - SA800 (TP) as a PDF document in order for the return to file. You will need a PDF printer to do this. (See www.cutepdf.com for a free PDF printer.) Please select Form > Edit Tax Return and select to print only the Partnership additional trade pages. Ensure you have deselected all other ticks. Change the printer to CutePDF printer. Press OK and save the PDF to a location of your choosing. IMPORTANT. Digita will automatically attach the EARLIEST accounting period with the return. It is the LATEST period which you must attach to the return.

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Once saved as a PDF, this can be attached via Edit > Schedule Editor > Other Return Information. Select the Online Filing Attachments tab. (If running a network installation with numerous users accessing the software, you must save the PDF and attach to the software from a shared location/drive accessible to all).

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5.1.3 General – Turnover in excess of £15million Per HMRC Special 4 where a partnership has turnover in excess of £15million, you should make only the following entries: •

Complete boxes 3.2 – 3.13

•

Leave boxes 3.14 – 3.115 blank other than boxes 3.27, 3.97 and/or 3.117 if appropriate

•

Complete the Partnership Statement omitting boxes 11, 11A and 12

•

Submit accounts and computations as an attachment

Personal Tax versions 11.4 et sec will deal with the first three of the above points automatically. You will need to attach PDF copies of the accounts and computations via Form > Other Return Information > Online Filing Attachments > Add. (If running a network installation with numerous users accessing the software, you must save the PDF and attach to the software from a shared location/drive accessible to all).

5.1.4 N2.11 / N1.11 Error message

Reason

Workaround

Error #6924: The sum of all occurences of box [N2.11] must equal the amount in box [N1.11]. Please check.

HMRC’s tolerance of differences on partner split now appears to be nil. This error is most likely to occur where you are using a percentage split and there is a £0.01 difference between the total allocated. (N2.11 is box 11 in the first column on the Partnership Statement) and the sum of allocated profits between the partners (N1.11 is box 11 in all subsequent columns)

Ensure that the profit split agrees exactly with no, even minor, differences.

Error message

Reason

Workaround

Error #6945: The sum of all occurrences of box [N2.11A] must equal the amount in box [N1.11A]. Please check.

HMRC’s tolerance of differences on partner split now appears to be nil. This error is most likely to occur where you are using a percentage split and there is a £0.01 difference between the total allocated. (N2.11A is box 11A in the first column on the Partnership Statement) and the sum of allocated profits between the partners (N1.11A is box 11A in all subsequent columns)

Ensure that the profit split agrees exactly with no, even minor, differences.

Error message

Reason

Workaround

Error #6944: The sum of all occurrences of box [N2.30] must equal the amount in box [N1.30]. Please check.

HMRC’s tolerance of differences on partner split now appears to be nil. This error is most likely to occur where you are using a percentage split and there is a £0.01 difference between the total allocated. (N2.30 is box 30 in the first column on the Partnership Statement) and the sum of allocated profits between the partners (N1.30 is box 30 in all subsequent columns)

Ensure that the profit split agrees exactly with no, even minor, differences.

5.1.5 N2.11A / N1.11A

5.1.6 N2.30 / N1.30

5.1.7 N1.27 must equal 7.34 Error message

Reason

Workaround

Error #6949: The amount in box [N1.27] must equal the amount in box [7.34]. Please check. XML Location:

This is a known problem with HMRC’s validation and will occur where the partnership has received foreign dividends which do qualify for the new UK notional tax credit of 10%.

HMRC Exclusion 3

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No published workaround, return must be filed on paper.

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5.1.8 N1.17 must equal 1.15 – 1.11 + 1.14 Error message

Reason

Workaround

Error #6679: The amount in box [1.17] must equal the sum if greater than zero, of [1.15] minus [1.11] plus [1.14], otherwise [1.17] must equal zero. Please check. XML Location:

This is a known problem with HMRC’s validation and will occur where the partnership has a furnished holiday loss and an entry in box 1.14.

HMRC Exclusion 5

Error message Error: The 'http://www.govtalk.g ov.uk/taxation/SA/SA 800/0809/1:ShortLine' element has an invalid value according to its data type.

Reason

No published workaround, return must be filed on paper.

Workaround th

This is likely to refer to 4 line of a partner(s) address being too long

The HMRC have a limit of 18 characters for the 4th line of any partner’s address (that appear in Box 6 on the partner’s statement). This will need to be shortened, either within the client details for the appropriate partner(s) or by editing the form on screen.

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5.1.9 Trusts/Estates (SA900)

5.2 SA900

5.2.1 Error: The ‘Beneficiary’ element Error message

Reason

Workaround

Error: The 'http://www.govtalk.gov.uk/taxation/SA/SA 900/07-08/1:Beneficiary' element has an invalid value according to its data type.

The beneficiary name cannot exceed 28 characters. This error usually refers to the Beneficiary name entered in boxes; • 14.1 – 14.13

No Published Workaround

Error message

Reason

Workaround

Error: The 'http://www.govtalk.gov.uk/taxation/SA/SA 900/07-08/1:Name' element has an invalid value according to its data type.

The beneficiary name cannot exceed 28 characters. This error usually refers to the Beneficiary name entered in boxes; • 16.2 – 16.15 • CGT – entries on page TC4

No Published Workaround

Abbreviate the beneficiary name. If the name cannot easily be abbreviated, manually edit the tax return, replacing the beneficiary name with “See Additional Information”, and include details in the additional information space

5.3 SA905 5.3.1 Error: The 'Name’ element

Abbreviate the beneficiary name. If the name cannot easily be abbreviated, manually edit the tax return, replacing the beneficiary name with “See Additional Information”, and include details in the additional information space

5.3.2 Error: The element 'PersonHasDied' Error message

Reason

Workaround

Error: The element 'PersonHasDied' in namespace 'http://www.govtalk.gov.uk/taxation/SA/SA 900/07-08/1' has invalid child element 'PersonHasDiedRow' in namespace 'http://www.govtalk.gov.uk/taxation/SA/SA 900/07-08/1'.

There are more than three instances of gains reported in the section on page four “Has any person holding an interest in possession died..”

No Published Workaround

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Not covered by the current Exclusion document. Please contact HMRC Online Filing helpdesk for further assistance

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5.3.3 Error: The element 'PersonHasBecomeEntitled' Error message

Reason

Workaround

Error: The element 'PersonHasBecomeEntitled' in namespace 'http://www.govtalk.gov.uk/taxation/SA/SA900/0708/1' has invalid child element 'PersonHasBecomeEntitledRow' in namespace 'http://www.govtalk.gov.uk/taxation/SA/SA900/0708/1'.

There are more than three instances of gains reported in the section on page four “Has any person become entitled.”

No Published Workaround Not covered by the current Exclusion document. Please contact HMRC Online Filing helpdesk for further assistance.

5.3.4 Error: The element 'PersonHasBecomeNonResident' Error message

Reason

Workaround

Error: The element 'PersonHasBecomeNonResident' in namespace 'http://www.govtalk.gov.uk/taxation/SA/SA900/0708/1' has invalid child element 'PersonHasDecomeNonResidentRow' in namespace 'http://www.govtalk.gov.uk/taxation/SA/SA900/0708/1'.

There are more than three instances of gains reported in the section on page four “Have the trustees ceased being resident.”

No Published Workaround Not covered by the current Exclusion document. Please contact HMRC Online Filing helpdesk for further assistance

5.3.5 Error: The element 'ChargeableOnSettlor' Error message

Reason

Workaround

Error: The element 'ChargeableOnSettlor' in namespace 'http://www.govtalk.gov.uk/taxation/SA/SA900/0708/1' has invalid child element 'ChargeableOnSettlorRow' in namespace 'http://www.govtalk.gov.uk/taxation/SA/SA900/0708/1'.

There are more than three instances of gains reported in the section on page four “Were any chargeable gains chargeable on the Settlor.”

No Published Workaround

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Not covered by the current Exclusion document. Please contact HMRC Online Filing helpdesk for further assistance

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