What is a "reasonable reason" for filing your income tax return late?
The deadline for submitting your self-assessment tax return online is 31st January using completion of the tax year on fifth April.
Submitting just one day late can lead to a ₤ 100 late filing penalty. This quantity can increase substantially the longer you leave it ( approximate your charge here).
HMRC do state however, that you can appeal versus a penalty if you have a " affordable excuse".
https://www.gov.uk/tax-appeals/reasonable-excuses
Each year, HMRC offers us a look into some of the more ' fascinating' reasons that taxpayers have attempted and failed, to use. Here's a sample of them:
" I had an argument with my other half and went to Italy for 5 years"
" My tax papers were left in the shed and the rat ate them"
" My partner ran over my laptop"
" My niece had relocated-- she made your house so messy I could not discover my login details to complete my return online"
" I was up a mountain in Wales, and couldn't discover 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 luxury yacht, and just getting post when I'm on dry land"
" My kid doodled all over the tax return, so I wasn't able to send it back"
" My pet dog consumed my income tax return ... and all of the suggestions"
" My partner helps me with my tax return, however she had a headache for 10 days"
" I could not finish my tax return, due to the fact that my hubby left me and took our accountant with him. I am currently searching for a brand-new accountant"
" A wasp in my car caused me to have an mishap and my tax return, which was within, was ruined"
" My spouse told me the deadline was the 31 March"
" I'm too brief to reach the post box"
" 2I was just too hectic-- my very first maid left, my 2nd house maid took from me, and my third housemaid was very sluggish to discover"
" My boiler had broken and my fingers were too cold to type"
" My spouse will not offer me my mail"
" I had a run-in with a cow"
" My bad back implies I can't go upstairs. That's where my tax return is"
Lastly, from an accounting professional in London ... "I've been too busy sending my clients' tax returns !!".
What is a ' affordable reason'?
According to HMRC, a sensible excuse is something that stopped you from satisfying a tax obligation that you took reasonable care to fulfill, 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 healthcare facility that prevented you from handling your tax affairs.
you had a lethal or major health problem.
your computer or software application failed prior to or while you were preparing your online return.
service problems with HM Earnings and Customizeds (HMRC) online services.
a flood, theft, or fire prevented you from completing your income tax return.
postal delays that you could not have actually forecasted.
delays associated with a disability you have.
Does coronavirus (COVID-19) count as a sensible reason?
Due to the extraordinary situations over the last 17 months, HMRC will think about coronavirus as a reasonable excuse for missing out on some tax obligations. You must discuss how you were impacted by the coronavirus in your solicitation.
Covid-19: Fifth and Final Self-Employment Income Assistance Plan Grant.
The website to obtain the 5th grant is now open. Welcomes to the portal for the fifth and final Self-Employment Earnings support Scheme (SEISS) grant are in the process of being sent out.
On the occasion that you're qualified, HMRC will contact us in order to provide you with your own independent claim date. From this point your portal will open for you to process your claim.
The Fifth grant is different from the last four grants as there are two levels of grant offered. Just how much you will get depends upon the level to which your organization has actually been struck by Covid -19.
You can declare the 5th grant if you believe that your business profit has been impacted by coronavirus (COVID-19) in between 1 May 2021 and 30 September 2021, and you meet the eligibility requirements.
The due date to make the claim is 30 September.
Acceptability requirements.
To be qualified for the 5th grant, there are numerous factors to consider that should be satisfied. These include:.
You must carry on a trade which has actually been negatively impacted by coronavirus.
You should have submitted your 2019/20 tax return on or before 2 March 2021.
You need to have continued a sell 2019/20 and 2020/21.
You should intend to continue to carry on a sell 2021/22 at the time you declare the grant.
Your trade should have suffered decreased activity, capacity or demand in the duration 1 May more info 2021 to 30 September 2021.
At the time that you make the claim, you need to fairly believe that you will suffer a significant decrease in trading revenues compared to what you would have usually expected had you not suffered the reduction in capability, activity or demand .
When choosing whether the reduction is substantial, candidates will need to consider their broader company circumstances. New assistance on how trading conditions impact eligibility can be found here
.
The grant does not require to be paid back if the candidate is eligible, however, as with the previous grants, it online accounting services will undergo 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 claim?
To make the claim you will need to have 2 various turnover figures.
You need to exercise your turnover figure for:.
April 2020 to April 2021.
Either 2019-2020 or 2018-2019.
HMRC will then compare these figures and determine just how much grant you will obtain.
Details on how to compute your turnover for the grant claim can be found here by HMRC.
What qualified candidates will get.
The fifth grant is determined using either 30% or 80% of an average of 3 months' trading profits. The following is how the suitable rate is used:.
If your turnover was down by less than 30% in 2020/21, you will get a grant worth 30% of 3 months average revenues. ( Topped at ₤ 2,850).
If your turnover was down by 30% or more in 2020/21, then you will get a grant equivalent to 80% of three months average revenues. (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 reliable claim date from which the portal will be offered.
You can examine here if you have the ability to make a claim.
As with the first four claims, those who are qualified and require to make a claim needs to do this themselves utilizing their Federal government Gateway account-- accountants and agents are not allowed to make claims on behalf of their customers, as this might set off a scams alert that will postpone charge.
Candidates can keep working if they make a claim, though they would require to state that their service has actually been affected for the duration they are declaring for. HMRC will check for deceptive claims.