The penalties for filling a tax return late are very high. However, penalties for late filing can sometimes be cancelled if the reason for not filing on time is because something unexpected or outside your control happens.
What is a reasonable excuse?
A reasonable excuse is something that stopped you meeting a tax obligation that you took reasonable care to meet, for example;
- Your partner or close relative passes away just before the filing deadline
- You are diagnosed with a serious illness
- Your computer or software fails at the time you were preparing to send your tax return
- Postal delays that were not in your control
- Documents being lost through fire, theft or flood
- Service issues HMRC Online Services
What wont count as a reasonable excuse
- You asked someone to file your tax return and they forgot
- You didn’t receive any reminders form HMRC
- Ignorance of tax law
How to Appeal a Penalty
If you receive a penalty letter through the post from HMRC, then use the appeal form that comes with it.
To appeal you will need the following;
- the date the penalty was issued
- the date you filed your Self-Assessment tax return
- details of yourreasonable excusefor late filing
If you don’t receive a penalty letter you can send a signed letter to HMRC with your name, UTR (Unique Tax Reference) number and the reason for late filing.
You will need to submit your appeal within 30 days of the date of the penalty notice.
For more information or advice, please Contact Us.
By Ejaaz Qureshi
As a seasoned tax professional with years of experience navigating the intricacies of tax regulations, I understand the gravity of the penalties associated with late tax returns. My expertise in tax law extends to a comprehensive understanding of the various scenarios that may qualify as reasonable excuses, allowing individuals to potentially avoid or appeal penalties.
The crux of the matter lies in the definition of a reasonable excuse, a term not to be taken lightly in the realm of tax compliance. A reasonable excuse, as per my in-depth knowledge of tax regulations, is an unforeseen circ*mstance that hinders an individual from fulfilling their tax obligations, despite having taken reasonable care to meet them.
The article correctly highlights examples of reasonable excuses, such as the unfortunate passing of a partner or close relative just before the filing deadline, being diagnosed with a serious illness, technical failures like computer or software issues during the preparation of tax returns, postal delays beyond one's control, and the loss of documents due to events like fire, theft, or flood. These instances, when properly documented, can serve as valid grounds for seeking leniency on late filing penalties.
Conversely, it's crucial to be aware of what won't count as a reasonable excuse. The article rightly points out that relying on someone else to file your tax return, their forgetfulness, not receiving reminders from HMRC, and ignorance of tax law are not considered reasonable excuses.
The process of appealing a penalty is laid out clearly. If you receive a penalty letter, utilizing the provided appeal form and furnishing essential details, such as the date the penalty was issued, the date of filing, and a detailed account of the reasonable excuse, is imperative. Even in the absence of a penalty letter, the article recommends submitting a signed letter to HMRC within 30 days, including necessary information such as your name, Unique Tax Reference (UTR) number, and the reason for the delayed filing.
In conclusion, my expertise underscores the accuracy of the information presented in the article. It provides a comprehensive overview of reasonable excuses, what doesn't qualify, and the proper procedure for appealing penalties. If you find yourself in such a situation, it is advisable to follow the outlined steps or seek professional advice for a more tailored approach to your specific circ*mstances.
