What is a " affordable excuse" for submitting your income tax return late?
The deadline for submitting your self-assessment income tax return online is 31st January adhering to completion of the tax year on fifth April.
Submitting simply one day late can result in a ₤ 100 late filing penalty. This amount can increase considerably the longer you leave it (estimate your charge here).
HMRC do state though, that you can appeal against a charge if you have a "reasonable excuse".
https://www.gov.uk/tax-appeals/reasonable-excuses
Each year, HMRC gives us a look into a few of the more ' fascinating' reasons that taxpayers have actually tried and failed, to utilize. Here's a sample of them:
" I had an argument with my wife and went to Italy for 5 years"
" My tax documents were left in the shed and the rat ate them"
" My other half ran over my laptop computer"
" My niece had actually relocated-- she made your home so untidy I might not find 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 have actually been cruising around the world in my yacht, and just picking up 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 dog consumed my income tax return ... and all of the tips"
" My other half helps me with my income tax return, but she had a headache for 10 days"
" I couldn't finish my income tax return, due to the fact that my other half left me and took our accounting professional with him. I am currently looking for a new accounting professional"
" A wasp in my cars and truck caused me to have an accident and my tax return, which was within, was damaged"
" My hubby informed me the deadline was the 31 March"
" I'm too short to reach the post box"
" 2I was simply too busy-- my very first housemaid left, my 2nd house maid stole from me, and my 3rd maid was really slow to find out"
" My boiler had actually broken and my fingers were too cold to type"
" My partner won't give me my mail"
" I had a encounter with a cow"
" My bad back implies I can't go upstairs. That's where my income tax return is"
From an accountant in London ... "I have actually been too busy submitting my customers' tax returns !!".
What is a ' sensible reason'?
According to HMRC, a reasonable excuse is something that stopped you from meeting a tax commitment that you took affordable care to fulfill:.
your partner or another close relative passed away soon before the income tax return or payment deadline.
you had an unforeseen remain in the healthcare facility that prevented you from handling your tax affairs.
you had a lethal or severe health problem.
your computer or software failed right before or while you were preparing your online return.
service issues with HM Profits and Customizeds (HMRC) online services.
a theft, flood, or fire prevented you from finishing your tax return.
postal delays that you might not have actually anticipated.
hold-ups associated with a disability you have.
Does coronavirus (COVID-19) count as a affordable excuse?
Due to the extraordinary situations over the last 17 months, HMRC will consider coronavirus as a affordable excuse for missing some tax responsibilities. You should describe how you were affected by the coronavirus in your appeal.
Covid-19: Fifth and Final Self-Employment Income Support Plan Grant.
The portal to look for the fifth grant is now open. Welcomes to the portal for the fifth and last Self-Employment Income assistance Plan (SEISS) grant remain in the process of being sent.
In case you're qualified, HMRC will contact us in order to provide you with your own independent claim date. From this point your website will open for you to process your claim.
The 5th grant is different from the last 4 grants as there are 2 levels of grant offered. Just how much you will get depends upon the degree to which your business has 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) between 1 May 2021 and 30 September 2021, and you meet the eligibility criteria.
The deadline to make the claim is 30 September.
Eligibility criteria.
To be eligible for the fifth grant, there are several considerations that must be met. These consist of:.
You need to continue a industry which has actually been adversely affected by coronavirus.
You should have sent your 2019/20 tax return on or before 2 March 2021.
You must have carried on a sell 2019/20 and 2020/21.
You need to plan to continue to carry on a trade in 2021/22 at the time you claim the grant.
Your trade needs to have suffered lower activity, capability or demand in here the duration 1 May 2021 to 30 September 2021.
At the time that you make the claim, you need to fairly believe that you will suffer a considerable reduction in trading earnings compared to what you would have normally anticipated had you not suffered the decrease in capability, activity or here need .
When deciding whether the decrease is considerable, applicants will require to consider their larger business scenarios. New guidance on the way trading conditions affect eligibility can be found here
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The grant does not require to be repaid if the candidate is eligible, however, just like the previous grants, it will be subject to earnings tax and National Insurance, and will require to be stated on the 2021-22 income tax return.
Proof must be maintained to support claims made.
What do you require to make a claim?
To make the claim you will require to have 2 different 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 compute your turnover for the grant claim can be found here by HMRC.
What eligible 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 earnings. ( 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 3 months average revenues. ( Topped at ₤ 7,500).
Making a claim.
HMRC will be getting in touch with all self-employed individuals in the UK that might be eligible to inform them of the fifth grant and offer 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.
Just like the first 4 claims, those who are qualified and require to make a claim needs to do this themselves using their Government Gateway account-- representatives and accounting professionals are not allowed to make claims on behalf of their customers, as this might activate a scams alert that will delay payment.
Applicants can keep working if they make a claim, although they would need to declare that their company has been impacted for the period they are claiming for. HMRC will check for fraudulent claims.