HMRC have admitted that software and coding glitches mean that some taxpayers may be unable to file their self assessment online for the 2016/17 tax year. Software developers are struggling to keep up with the increasingly complex tax systems.
Experts say the problems have been caused with the new tax free allowances for Dividends and savings and how these interact with the zero rate savings band.
This has become such a big issue that HMRC has updated it’s list of those who can file paper returns this year.
Taxpayers with no savings income of between £11,000 and £16,000 and a total income of more than £32,000 will be allowed to file on paper. As will those with annual incomes of more than £145,000 and no dividend income of between £27,000 and £32,000.
HMRC aim to resolve this problem before the end of the current tax year, but some observers are noting that with the move to MTD such a technological blunder by HMRC will not inspire confidence.