Personal Tax- Error code 3001 6492 or 6594, 6120/6495/8374
Article ID
personal-tax-error-code-3001-6492-or-6594
Article Name
Personal Tax- Error code 3001 6492 or 6594, 6120/6495/8374
Created Date
13th July 2021
Product
IRIS Personal Tax
Problem
IRIS Personal Tax - This error occurs because the liability calculated by IRIS is different from that generated by the HMRC system. 6492, 6495, 6594, 6120, 8374
Resolution
1.You must update to the latest IRIS version Help | About (and Check for Downloads). This is because you may get a ‘HMRC Exclusion ID’ error rather then a 6492/6495/6594 (Exclusion ID’s are HMRC issues and are not from IRIS PT). Also once you update, now regenerate the return so it picks up the latest updates and submit.
2. Important Note: You must always regenerate the tax return or it will not pick up any changes you have just made (also if you cannot find the issue just regenerate the tax return). A common issue is that users keep trying to submit the same tax return in the transmit screen with triggers the 6492 rather then just regenerate it.
3. These 6492/6594 errors are coming directly from HMRC as they have detected entry(s) which are not permitted by them. Check what income types you entered /e.g. if you have any Capital gains income then check against the Dividends and Capital Gains section.
Employment
| Question | Solution |
| Does the client have expenses which are in excess of the income they have received | Employment / Expenses: Users are required to either move the expense claims to an employer which has sufficient income to cover these amounts or if no other employment income has arisen in the year the expenses cannot be claimed and must be removed from the data entry screen. |
| Has the client claimed any Class 1 earnings from P60 (earnings from PT to UEL) and error 3001 6495 | May show as 3001 6495 Class 4 NIC amount entered in box [CAL4] does not agree with calculated value of £XX Employment / Earnings – open the company: where clients claiming NIC1 will trigger a 6495/6492/6594/6495 even when its permitted. You can either remove the class 1 and add it under notes SA100 to ask HMRC to add the NIC1 back in when they receive it OR submit it by post. Note: you may have overridden the withdrawal of cash basis figure in trade profession or vocation | sole trade or partnership | Adjustments tab, double -click on the relevant account end date | select the spyglass next to ‘adjustment on the withdrawal of cash basis’ | remove the figure in the override column. If there no entries under adjustments then it will be the Class NIC1 earnings entry made above, so remove it and add a note. |
Trade, Profession or Vocation
| Question | Solution |
| Have they claimed the ‘Trading income allowance’ and it matches/exceeds the Sole trade Turnover? Also check if ‘Other income’ is filled in. | This applies if the trade has only ‘OTHER income’ and no ‘Turnover’ entries TPV/ STP – open the relevant period: Business details, tick: ‘Force the self-employment pages even if there is no profit with Trading Allowance claimed’ |
| Have they claimed the ‘Trading income allowance’ but have no trade profit and only SEISS grant income. | You cannot claim ‘Trading allowance’ just against SEISS grants. You need to untick the allowance claim. https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim40458 |
| Are the losses from the business which are being offset against other income in the year WHICH is higher than the actual loss which arose within year | TPV/ STP – open the relevant period: Users are required to limit the amount of business loss being offset against other income to the amount of loss which actually arose within the tax year. |
| Information has been entered into the other income overlap section for a partnership and this is appearing as a deduction on the tax computation | TPV/ STP – open the relevant period: Users are required to remove the information from the other income overlap fields within the trade profession or vocation section. |
| The business has made a loss and the loss to offset against capital gains option has been completed | TPV/ STP – open the relevant period: Users are required to offset the loss against other income first then any remaining loss can be offset against capital gains. |
| Do they have a Partnership and made a entry under ‘Other untaxed income’ and ‘Adjustment to profit’ | TPV/ STP – open the relevant period: a entry here can cause the error. IRIS will calculate the adjustment automatically based on the current year basis rules. Leave the adjustment field blank. In the transitional year (1997), the transitional averaging will be performed by Business Tax, not by Personal Tax. The allocated share should be the averaged amount. In the unlikely event that this figure needs to be changed a manual entry can be made in this field and you need to submit by paper with an additional note explaining this. |
| If you have gone through the entire list and cannot find the issue but you have a Trade entry | Open the trade period, open the tab: Balance Sheet. Click on very top left cell (Plant) then use your TAB key and tab along until it goes back to the top. This will refresh this screen and the totals. Now regenerate, submit |
| Do you have any SHORT(SES) Self Employment pages being created on the SA100? You may also a loss entry (in Self employment or Partnership) and usage of that loss. It may show as a 6594 error. | If SES pages appear then it is because of this short version then it means that HMRC do not receive the value for the Class 4 NIC adjustment so the calculation causes the 6492 error. We recommend option 1: 1) Tick: ‘Force Full Self Employment pages instead of short’ from within the Self Employment data entry under Business details 2) Under NIC adjustments – If you do not wish the system to adjust the Class 4 NIC profits by the loss then enter a negative value in the Adjustments to chargeable Class 3 NIC data entry |
Foreign
| Question | Solution |
| Is the clients only source of foreign income dividends which total less than £300 and/or interest which total less than £2000 and they have had UK/Special withholding tax deducted from them | Foreign / Dividends and Interest: Users are required to override the system to force this income to appear on the foreign supplementary pages. This is done by clicking foreign, select additional information and then enable the option to ‘force foreign dividends of £300 or less onto the foreign pages’ and/or ‘force foreign interest of £2000 or less onto the foreign pages’ |
| Do they have Foreign Dividend entry and also ticked Non Resident (under the Resident Questionnaire) | HMRC rules: If ticked ‘Non Resident’ then foreign dividends do not need to be declared on the SA100 or it can be rejected. So either submit it by post OR remove the foreign entry and add it under Additional notes. |
Trust, settlements and estates
| Question | Solution |
| Have income from a trusts, settlement or an estate but the ‘tax deducted at source‘ has been overridden when this data was entered | Your overwritten tax deduction is not permitted by HMRC. So delete the tax entry and allow PT to auto calculate the tax and you add a note to HMRC to ask them to adjust it manually when they receive the return (do remember to correct the new GROSS income as well) OR you will need to contact HMRC who can provide details of an alternative section of the Tax Return to enter the income in. |
| Have you entered a ‘Residential finance cost Brought forward’ value but not filled in ‘Residential Property income’ | Remove the value in ‘Residential finance cost – Brought forward’ and enter it in under ‘Residential Property income’. Run the Tax comp and it will populate the ‘Residential finance cost’ arising in year box. |
Interest
| Question | Solution |
| Has the tax deducted from the bank interest been overridden – do you get a warning: “Tax on UK interest does not equal 20% of the gross amount, submitting this return online may result in a rejection. Do you wish to proceed?” | Check if you have interest income with penny entries eg £100.51 then please round up/down to whole £ and enter new 20% tax value in. If its all correctly entered: If the tax deducted from the clients bank interest is not exactly what has been calculated in the software, users are required to enter the interest income as follows: 1. Click Interest then select Government Security. Enter the income and the tax deducted at source, click OK then click no to overwrite the tax deducted. Note income entered here will appear in boxes 1-3 on page Ai1. |
Dividends and Capital Gains
| Question | Solution |
| Do they have any Capital gain property disposals – and have claimed the Residential property | Dividends/Capital assets/ assets, open the asset, Property mag glass and untick residential property. It should not change the tax calculation, If it makes a change then re-tick it and then read the next check below and the rest of the checks. Update in 2021: If you have also entered the Disposal ‘Tax on gain already charged’ value and unticked Residential then your tax calc may also be changed, then please update to IRIS version 21.3.0, retick the ‘Residential’ option (so you are back to the original tax calc) and regenerate and submit – you will get a ‘HMRC Exclusion ID’ warning and it will ask you to submit by paper to HMRC due to issues on their side . |
| Do they have any Capital gain property disposals – and have claimed the Residential property AND Entrepreneurs Relief/Business Assets BADR (on the disposal screen) | 1. Rather than just one property asset – split it into two assets. 2. First asset will only be ticked Residential property 3. The other asset will only be ticked claiming Entrepreneurs relief BADR, this must be entered under ‘Other Capital Gains’ 4. Manually apportion the purchase price / disposal etc between the two assets (eg split between the part qualifying for BADR and the part qualifying for residential property) 5. Capital assets, Edit, Losses and other info, Additional info and explain its actually 1 property This is a HMRC restriction that a Residential asset cannot report the ENTREP (BADR) relief in the Residential section and this workaround is advised from the HMRC site. You then cannot claim BADR on the asset which is not ticked BADR relief. |
| Do they have any Capital gain property disposals – and have claimed the ‘Liable to Non resident CGT’ and are ticked Non-Resident or not and also claimed Entrepreneurs Relief/Business Assets BADR | a) If the client is a Non Resident then open the Resident questionnaire and tick ‘Non resident’. b) If the client is a UK Resident then untick ‘Liable to Non resident CGT’ because ‘BADR’ relief cannot be claimed on a Non-resident capital gains tax disposals (NRCGT) – open the asset and untick ‘Business Assets’. |
| Do they have any ‘Other Capital gains’ claimed Relief and has Enterprise relief– ticked ‘Business Assets‘. | Open the asset and untick the ‘Claim Relief’ and untick ‘Business Assets’. If the Tax computation tax due remains the same then regenerate and submit again. if the issue continues the keep checking this list. |
| Do they have any ‘Shareholding’ Events where it has ticked ‘Business Assets’ | Go to Shareholdings, Events, open the share and untick ‘Business Assets’. If the Tax computation tax due remains the same then regenerate and submit again. |
| Do they have any Asset disposals claiming Foreign Tax credit relief and a Capital Gain adjustment? | Open the Disposal screen and open the asset disposal and check if Foreign Tax credit relief has been ticked. Then go back to the Main Asset screen and Edit/Losses and Other information/Capital Gains Adjustment and find a entry- You cannot claim both the relief and the adjustment. Untick the credit relief. Why use the CG adjustment?: https://www.iris.co.uk/support/knowledgebase/kb/ias-10326/ |
| Do they have a Capital gain, Excluded income calculation on the Tax comp and are Non Residents? | Known HMRC 2022 issue. If you have checked ALL the steps and cannot find the issue: Do they have a Capital gain, Excluded income calculation on the Tax comp and are Non Residents. If yes then our Development team has investigated this and confirm PT is correct on the tax calc and HMRC are incorrectly blocking it and causing the 6492 (the HMRC TCG also gives a different tax calc compared to PT, our Dev team confirm PT is giving the correct tax calc). Unfortunately we do not have a work around that will enable online filing and users would have to file a paper return with an unable to file form (see below) until we have some further clarity from HMRC (we recommend you do file by paper as its unlikely to be resolved by Jan). |
| Do they have a Capital gain disposal which has a Tax on gain already charged entry | Known HMRC 2022 issue. If you have checked ALL the steps and cannot find the issue: Do they have a Capital gain disposal which has a Tax on gain already charged and the 6492 difference states the exact value of the Tax on gain already charged then HMRC has confirmed they are incorrectly blocking the submission and PT is correct. We recommend you submit it as a paper return with an unable to file form (see below- citing it as a HMRC issue) as this is unlikely to be solved by Jan. Also HMRC stated ‘Users need to take this up directly with the HMRC Online Services Helpdesk on 0300 200 3600’. |
| Do they have a Capital gain disposal and is Residential Property and with Foreign Tax Credits | Known HMRC 2020 issue. If you have checked ALL the steps and cannot find the issue: Do they have a Capital gain disposal and is Residential Property and with Foreign Tax Credits– Then PT is correct and HMRC are incorrectly blocking the submission. The amount of foreign tax credit claimed has to be restricted to the lower of foreign tax paid or the UK equivalent PER asset. PT allocates the Annual Exemption Allowance between ALL properties to create a higher tax due amount on the residential property, therefore enabling to fully utilise the Foreign Tax credit. The IRIS calculation uses the AEA in the most beneficial way, however HMRC server does not recognise this calculation. As HMRC’s server is not agreeing with the IRIS calculation you will get the 6492. We recommend you submit it as a paper return with an unable to file form (see below- citing it as a HMRC issue). |
| Do they have a Capital gain disposal, ticked foreign tax paid and you fill in the special withholding tax | The special withholding tax is only relevant if the client is a UK resident non-domicile taxable on the remittance basis. If not a non-dom, then remove the withholding tax value and mention it in notes under Reliefs/Misc/ Additional info. |
Other Income
| Question | Solution |
| Does the client have income from a chargeable event gain where additional tax has been paid by the trustees | Other income: Users are required to upgrade to the latest version of IRIS via the IRIS website. |
National Insurance Class 2
| Question | Solution |
| TPV/ NIC adjustment – has the client ticked override and/or voluntary payments and claimed/entered a NIC2 figure If you get a 3001 8374 error then its also linked to a Voluntary NIC2 entry | Where clients claiming voluntary NIC2, it may trigger a 6492/6594/8374 even when its permitted. You can either untick the override + voluntary (and remove manual NIC2)and add it under notes SA100 to ask HMRC to add the NIC2 back in when they receive it OR submit it by post. This has also been tested on the HMRC Test case generator and it also gives the NIC2 value so HMRC is blocking the online submission. NOTE: Have you also claimed the ‘Trading income allowance’ and it matches/exceeds the Sole trade Turnover? if yes then read the answer at the top of this checklist. |
| Do they get an exception where its quoting a different NIC2 calculation to the one in PT | TPV/ NIC adjustment- edit the NIC2 calc to the HMRC value and only tick ‘Override’ (do not tick Voluntary) – regenerate and submit. |
| Do they get a exception where it states the difference is the exact value of the NIC2 amount. You may have multiple employment/director entries each with a ‘Class 1 earnings from P60’ entry. | TPV/ NIC adjustment- only tick ‘Override’ (do not tick Voluntary) – regenerate and submit. |
6120 Student loan
| Question | Solution |
| If they get a 6492 and 6120 Student loan or Postgraduate | Do you have Student loan entries under Employments and Expenses entries. 1. Load the relevant tax year, Go to Employment | Earnings Foreign Earnings – Involvements | now find every employment entry and remove the ‘to’ dates entered (even ones you believe have no data) and close the screen, then check each employment, is there any income or tax entry? If yes; remove the value entries (BUT not the one which you know is correct/relevant). Once you finished checking every entry – add back the TO date again and regenerate and submit. 2. Do you have ‘Postgraduate Loan deductions’ entries under Employments and Expenses. If you do: Reliefs/ Misc/ Tax calc/ Postgraduate loan/ Use the Delete button/ Change client and go back to original client/ re-enter the details this time with a date loan started entry. Regenerate and submit. 3. If these 2 steps are done and still getting the 6120 then please go through the whole 6429/6549 checklist – for example if you have sole trade income and trading allowance. |
Married Couples Allowance and Marriage Allowance
| Question | Solution |
| If a client is born before 6/4/1935 and is married and you claim the ‘Married Couples allowance'(MCA) and entered ‘Amount of Surplus transferred’ value | Enter the MCA details and remove the value for ‘Amount of Surplus transferred’. The Tax comp will still give you the MCA allowance as its detects the clients age etc. |
Also note we have several cases where HMRC have blocked the return even when all the figures in PT are correct. If you are confident your tax calculation is correct then some accountants have submitted the Tax Return by post to HMRC.
If you need to submit by post when its closer to January deadline and past the paper submission deadline – attach this form https://www.gov.uk/government/publications/self-assessment-reasonable-excuse-for-not-filing-return-online
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