When there is a late filing of tax returns, many people come up with absurd excuses only for avoiding paying a penalty. HM Revenue & Customs (HMRC) receives lot of them which only becomes a cause of laughing stock. We have accumulated a list of top ten lists of worst excuses published by HMRC.
• My pet dog ate my tax return…and all the reminders
• I was up a mountain in Wales, and couldn’t find a post box or get an internet signal
• I fell in with the wrong crowd
• I’ve been travelling the world, trying to escape from a foreign intelligence agency
• Barack Obama is in charge of my finances
• I’ve been busy looking after a flock of escaped parrots and some fox cubs
• A work colleague borrowed my tax return, to photocopy it, and didn’t give it back
• I live in a camper van in a supermarket car park
• My girlfriend’s pregnant
• I was in Australia
Needless to say, these excuses are just ridiculous. That is why taxpayers like you should give out reasonable excuses for late filing of tax returns to HMRC. When you have reasonable excuse, you will have a strong evidence and can appeal to HMRC against penalties.
What is called a reasonable excuse?
If an unexpected event beyond your control causes you to file tax returns late, then it can be called a ‘reasonable excuse.’ HMRC online failure or postal delays, death of a partner near the deadline of filing tax returns, serious mental or physical illnesses are some examples of reasonable excuses.
Ruth Owen, director general of personal tax at HMRC, said: “People can have a genuine excuse for missing a tax deadline, but owning a pet with a taste for HMRC envelopes isn’t one of them.”
When you fill your tax returns late, you will be charged with major penalties. But, what are the penalties for late return? You need to look at the list below and get your fact straight.
What are the penalties for late tax return filing?
• One day late – £100 (Also implies even when there is no tax to be paid)
• Three months late – Along with £100, additional £10 for each day up which can reach up to 90-day making a £900 in total
• Six months late – Along with the penalties above, £300 or 5% of the tax due, whichever is greater
• 12 months late – £300 or 5% of the tax due, whichever is the greater
