Marriage Allowance claims
Firstly, let’s look at Marriage Allowance claims. This tax break allows a spouse to transfer a portion of their tax-free allowance to their higher-earning partner.
While the online process was supposed to simplify this procedure, it often led to false claims as it was relatively easy to apply for years when eligibility was not met.
The online process was clunky, too, which contributed to the issue. As a result, HMRC faced costs in rectifying erroneous claims, so they added a paper form route to applying.
Now, you can apply for Marriage Allowance by post.
Reporting Capital Gains Tax
Another tricky aspect of digital filings was reporting property disposals for Capital Gains Tax.
Many individuals required to complete the CGT on property returns couldn’t use – or had no reason to use – the online self-assessment service.
HMRC acknowledges that some are “digitally excluded”, meaning they cannot use HMRC online due to age, disability, location or any other reason. Others are “digitally capable” but are unable to verify their identity online, which may apply to students or elderly individuals.
The move is welcome for those individuals who prefer a traditional tax filing method or who face difficulties with the online system.
Now, you can use paper forms to report CGT on property.
By providing online and offline processes, HMRC is trying to accommodate non-digital users while pressing on with making tax digital.
While some simply prefer not to use online tax services, others cannot use them for various reasons, including accessibility and location.
If you need assistance with Marriage Allowance, reporting Capital Gains Tax or other tax responsibilities, contact Hugh Davies & Co.
We’ll help you determine what you need to submit and whether paper or digital processes suit your situation.