What is a “reasonable excuse” for filing your tax return late?
The deadline for submitting your self-assessment tax return online is 31st January following the end of the tax year on 5th April.
Submitting just one day late can result in a £100 late filing penalty. This amount can rise significantly the longer you leave it (estimate your penalty here).
HMRC do say though, that you can appeal against a penalty if you have a “reasonable excuse”.
https://www.gov.uk/tax-appeals/reasonable-excuses
Each year, HMRC gives us a look into some of the more ‘interesting’ excuses that taxpayers have attempted, and failed, to use. Here’s a sample of them:
- “I had an argument with my wife and went to Italy for 5 years”
- “My tax papers were left in the shed and the rat ate them”
- “My husband ran over my laptop”
- “My niece had moved in – she made the house so untidy I could not find my login details to complete my return online”
- “I was up a mountain in Wales, and couldn’t find a post box or get an internet signal”
- “My mother-in-law is a witch and put a curse on me”
- “I’ve been cruising around the world in my yacht, and only picking up post when I’m on dry land”
- “My child scribbled all over the tax return, so I wasn’t able to send it back”
- “My dog ate my tax return…and all of the reminders”
- “My wife helps me with my tax return, but she had a headache for ten days”
- “I couldn’t complete my tax return, because my husband left me and took our accountant with him. I am currently trying to find a new accountant”
- “A wasp in my car caused me to have an accident and my tax return, which was inside, was destroyed”
- “My husband told me the deadline was the 31 March”
- “I’m too short to reach the post box”
- “2I was just too busy – my first maid left, my second maid stole from me, and my third maid was very slow to learn”
- “My boiler had broken and my fingers were too cold to type”
- “My wife won’t give me my mail”
- “I had a run-in with a cow”
- “My bad back means I can’t go upstairs. That’s where my tax return is”
- Lastly, from an accountant in London…. “I’ve been too busy submitting my clients’ tax returns!!”
So what is a ‘reasonable excuse’?
According to HMRC, a reasonable excuse is something that stopped you from meeting a tax obligation that you took reasonable care to meet, for example:
- your partner or another close relative died shortly before the tax return or payment deadline
- you had an unexpected stay in hospital that prevented you from dealing with your tax affairs
- you had a serious or life-threatening illness
- your computer or software failed just before or while you were preparing your online return
- service issues with HM Revenue and Customs (HMRC) online services
- a fire, flood or theft prevented you from completing your tax return
- postal delays that you could not have predicted
- delays related to a disability you have
Does coronavirus (COVID-19) count as a reasonable excuse?
In light of the extraordinary circumstances over the last 17 months, HMRC will consider coronavirus as a reasonable excuse for missing some tax obligations. You must explain how you were affected by coronavirus in your appeal.
