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 your reasonable excuse for 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