What is a " sensible reason" for filing your income tax return late?

The deadline for sending your self-assessment tax return online is 31st January observing the end of the tax year on 5th April.

Sending simply one day late can result in a ₤ 100 late filing charge. This quantity can rise considerably the longer you leave it ( approximate your penalty here).

HMRC do state however, that you can appeal versus a penalty if you have a " sensible reason".

https://www.gov.uk/tax-appeals/reasonable-excuses

Each year, HMRC gives us a look into a few of the more ' intriguing' excuses that taxpayers have tried and stopped working, to utilize. Here's a sample of them:

" I had an argument with my spouse and went to Italy for 5 years"
" My tax documents were left in the rat and the shed ate them"
" My other half ran over my laptop computer"
" My niece had moved in-- she made your home so messy I might not discover 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 have actually been travelling worldwide in my private yacht, and just getting post when I'm on dry land"
" My kid doodled all over the income tax return, so I wasn't able to send it back"
" My pet consumed my income tax return ... and all of the reminders"
" My spouse helps me with my tax return, but she had a headache for ten days"
" I couldn't complete my income tax return, due to the fact that my husband left me and took our accountant with him. I am currently trying to find a new accounting professional"
" A wasp in my cars and truck triggered me to have an mishap and my income tax return, which was inside, was ruined"
" My spouse told me the deadline was the 31 March"
" I'm too brief to reach the post box"
" 2I was simply too hectic-- my first maid left, my second housemaid took from me, and my third maid was very sluggish to find out"
" My boiler had broken and my fingers were too cold to type"
" My partner won't give me my mail"
" I had a run-in with a cow"
" My bad back suggests I can't go upstairs. That's where my income tax return is"
Finally, from an accountant in London ... "I have actually been too hectic submitting my customers' income tax return !!".
So what is a ' sensible excuse'?

According to HMRC, a affordable reason is something that stopped you from satisfying a tax obligation that you took affordable care to satisfy, for example:.

your partner or another close relative died quickly prior to the tax return or payment due date.
you had an unexpected remain in the medical facility that avoided you from dealing with your tax affairs.
you had a dangerous or serious disease.
your computer or software application stopped working right before or while you were preparing your online return.
service concerns with HM Profits and Customs (HMRC) online services.
a flood, theft, or fire avoided you from completing your income tax return.
postal hold-ups that you could not have actually forecasted.
delays associated with a special needs you have.
Does coronavirus (COVID-19) count as a reasonable excuse?

Due to the extraordinary situations over the last 17 months, HMRC will think about coronavirus as a affordable excuse for missing some tax commitments. You need to explain how you were affected by the coronavirus in your appeal.

Covid-19: Fifth and Last Self-Employment Earnings Assistance Scheme Grant.

The portal to get the 5th grant is now open. Invites to the portal for the fifth and last Self-Employment Earnings assistance Plan (SEISS) grant are in the process of being sent out.

In case you're qualified, HMRC will contact us in order to supply you with your own independent claim date. From this point your website will open for you to alter your claim.

The Fifth grant is different from the last four grants as there are two levels of grant available. How much you will receive depends on the extent to which your company has been hit by Covid -19.

You can declare the 5th grant if you believe that your organization earnings has actually been affected by coronavirus (COVID-19) in between 1 May 2021 and 30 September 2021, and you fulfill the eligibility requirements.

The due date to make the claim is 30 September.

Qualification criteria.

To be eligible for the fifth grant, there are several considerations that need to be fulfilled. These consist of:.

You need to continue a deal which has been adversely check here affected by coronavirus.
You need to have sent your 2019/20 income tax return on or prior to 2 March 2021.
You should have carried on a trade in 2019/20 and 2020/21.
You need to plan to continue to continue a trade in 2021/22 at the time you claim the grant.
Your trade needs to website have suffered lower activity, capability or demand in the duration 1 May 2021 to 30 September 2021.
At the time that you make the claim, you need to reasonably believe that you will suffer a significant decrease in trading revenues compared to what you would have generally expected had you not suffered the decrease in capacity, activity or need .
When deciding whether the decrease is significant, candidates will need to consider their wider organization situations. New guidance on the way trading conditions affect eligibility can be discovered here
.

The grant does not need to be paid back if the applicant is qualified, but, similar to the previous grants, it will go through income tax and National Insurance coverage, and will need to be stated on the 2021-22 tax return.

Proof must be kept to support claims made.

What do you require to make a statement?

To make the claim you will need to have 2 various turnover figures.

You require to work out your turnover figure for:.

April 2020 to April 2021.
Either 2019-2020 or 2018-2019.
HMRC will then compare these figures and figure out how much grant you will get.

Details on how to determine your turnover for the grant claim can be found here by HMRC.

What eligible candidates will get.

The fifth grant is determined utilizing either 30% or 80% of an average of 3 months' trading profits. The following is how the suitable rate is used:.

You will get a grant worth 30% of three months average earnings if your turnover was down by less than 30% in 2020/21. (Capped at ₤ 2,850).
You will receive a grant equal to 80% of 3 months typical profits if your turnover was down by 30% or more in 2020/21. (Capped at ₤ 7,500).
Making a claim.

HMRC will be calling all self-employed individuals in the UK that may be eligible to inform them of the 5th grant and supply them with an effective claim date from which the portal will be offered.

If you are able to make a claim, you can inspect here.

Just like the very first 4 claims, those who are qualified and need to make a claim must do this themselves using their Government Entrance account-- accounting professionals and representatives are not permitted to make claims on behalf of their clients, as this may set off a fraud alert that will delay settlement.

Candidates can keep working if they make a claim, even though they would need to declare that their company has actually been affected for the period they are claiming for. HMRC will check for deceptive claims.