What is a " affordable excuse" for filing your tax return late?

The due date for sending your self-assessment income tax return online is 31st January observing the end of the tax year on fifth April.

Sending simply one day late can lead to a ₤ 100 late filing charge. This amount can rise substantially the longer you leave it ( approximate your penalty here).

HMRC do say however, that you can appeal against a charge if you have a " affordable reason".

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

Each year, HMRC gives us a check out some of the more ' intriguing' reasons that taxpayers have tried and failed, to utilize. Here's a sample of them:

" I had an argument with my other half and went to Italy for 5 years"
" My tax documents were left in the rat and the shed consumed them"
" My husband ran over my laptop"
" My niece had actually relocated-- she made your home so untidy I could not discover my login details to finish 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 globe in my luxury yacht, and only picking up 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 tips"
" My partner assists me with my tax return, but she had a headache for 10 days"
" I could not finish my tax return, since my husband left me and took our accountant with him. I am currently searching for a brand-new accounting professional"
" A wasp in my car caused me to have an accident and my tax return, which was inside, was ruined"
" My partner informed me the due date was the 31 March"
" I'm too brief to reach the post box"
" 2I was simply too hectic-- my very first maid left, my second maid stole from me, and my third maid was very slow to learn"
" My boiler had broken and my fingers were too cold to type"
" My spouse 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've been too busy sending my customers' tax returns !!".
What is a ' affordable reason'?

According to HMRC, a affordable excuse is something that stopped you from meeting a tax obligation that you took reasonable care to fulfill:.

your partner or another close relative passed away soon before the income tax return or payment due date.
you had an unforeseen stay in the hospital that avoided you from dealing with your tax affairs.
you had a lethal or major illness.
your computer system or software application failed just before or while you were preparing your online return.
service issues with HM Earnings and Customizeds (HMRC) online services.
a theft, flood, or fire avoided you from completing your income tax return.
postal delays that you could not have actually anticipated.
hold-ups associated with a disability you have.
Does coronavirus (COVID-19) count as a sensible excuse?

Because of the extraordinary scenarios over the last 17 months, HMRC will consider coronavirus as a reasonable reason for missing out on some tax obligations. You should describe how you were affected by the coronavirus in your solicitation.

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

The portal to request the 5th grant is now open. Welcomes to the portal for the 5th and last Self-Employment Earnings support Plan (SEISS) grant are in the procedure of being sent out.

In the event that you're qualified, HMRC will get in touch in order to supply you with your own independent claim date. From this point your portal will open for you to prepare your claim.

The 5th grant is various from the last four grants as there are two levels of grant offered. Just how much you will receive depends on the degree to which your organization has been hit by Covid -19.

You can claim the fifth grant if you believe that your organization profit has been impacted by coronavirus (COVID-19) 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 requirements.

To be qualified for the 5th grant, there are numerous considerations that must be satisfied. These include:.

You should carry on a deal which has actually been negatively impacted by coronavirus.
You must have sent your 2019/20 tax return on or prior to 2 March 2021.
You must have carried on a trade in 2019/20 and 2020/21.
You need to intend to continue to continue a sell 2021/22 at the time you declare the grant.
Your trade needs to have suffered lower activity, capability or need in the period 1 May 2021 to 30 September 2021.
At the time that you make the claim, you must fairly think that you will suffer a significant decrease in trading revenues compared to what you would have typically expected had you not suffered the reduction in demand, capacity or activity .
When choosing whether the reduction is significant, candidates will require to consider their larger service situations. New guidance on the way trading conditions impact eligibility can be found here
.

The grant does not require to be paid back if the applicant is eligible, however, just like the previous grants, it will be subject to earnings tax and National Insurance, and will need to be stated on the 2021-22 tax return.

Evidence needs to be here retained to assist claims made.

What do you need 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 determine just how much grant you will acquire.

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

What qualified applicants will get.

The 5th grant is calculated utilizing either 30% or 80% of an average of 3 months' trading revenues. The following is how the appropriate rate is applied:.

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

HMRC will be getting in touch with all self-employed people in the UK that may be qualified to inform them of the fifth grant and supply them with an efficient claim date from which the website will be available.

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

Just like the very first four claims, those who are eligible and require to make a claim must do this themselves using their get more info Federal government Entrance account-- representatives and accounting professionals are not allowed to make claims on behalf of their clients, as this might trigger a scams alert that will delay repayment.

Applicants can keep working if they make a claim, although they would need to state that their organization has been impacted for the period they are claiming for. HMRC will check for deceptive claims.