Serious error found in HMRC online assessment form

[Praktica]

I found an anomaly in the online calculation which resulted in an excessively high tax demand.
Wrote it up an my blog but can't link here as a newcomer but it might show up if you google
"HMRC Self Assessment Form. Serious Anomaly with Foreign Earnings" tweeted at @pthonyc

 

[john1989]

I don't think it's an anomaly. It seems as though you were filling in the wrong parts of the tax return.

 

[David Griffiths]

I don't think it's an anomaly. It seems as though you were filling in the wrong parts of the tax return.

I suspected that when I saw the first post, and didn't bother to look at the link. HMRC publish a form, all of the professional tax providers follow the same procedures when they provide theirs, yet a taxpayer completing their own forms doesn't like the answer so the forms must be wrong. Unlikely

 

[Praktica]

I talked through the application with the HMRC advisor who in turn went off to consult with her superior so I don't believe that there was an error in form filling. I am in the fairly unusual situation that a large proportion of my income comes from the USA and the system is unable to reconcile my combination of factors ie the loss in UK trading, untaxed at source foreign income, cash accounting, simplified single expenses item. If anyone is able to carry out a test on the self assessment itwould be interesting if they could repeat my experience. The HMRC could only advise that I filled the form in wrongly so that the right answer emerged.
David, I'm impressed that you can give an opinion on a web site you haven't visited

 

[john1989]

Your sales made in the US are not foreign income.
They form part of your trading income as a sole trader in the UK.

 

[Praktica]

No, licences are made via a US agency who take their cut then transfer the rest to me. I have to apply to the IRS for tax exemption and the money comes to me in US diollars to be taxed in UK

 

[David Griffiths]

No

Yes.

 

[uk26]

Tax is not applicable to you in the USA as you are not living their.

If you have made a profit from the USA income, then this is subject to UK TAX

No, licences are made via a US agency who take their cut then transfer the rest to me. I have to apply to the IRS for tax exemption and the money comes to me in US diollars to be taxed in UK

 

[talkinpeace]

"I am in the fairly unusual situation that a large proportion of my income comes from the USA"

but by no means unique.
It is more likely that you ticked the wrong box than that the form is wrong
and FWIW if you used an accountant who does many such returns then it would likely save you a chunk of money