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

The deadline for sending your self-assessment income tax return online is 31st January adhering to completion of the tax year on 5th April.

Submitting simply one day late can result in a ₤ 100 late filing penalty. This amount can increase substantially the longer you leave it (estimate your charge here).

HMRC do say though, 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 actually tried and failed, to use. Here's a sample of them:

" I had an argument with my wife and went to Italy for 5 years"
" My tax papers were left in the rat and the shed consumed them"
" My spouse ran over my laptop computer"
" My niece had actually relocated-- she made your house so untidy I could not find my login information to finish 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've 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 dog ate my tax return ... and all of the suggestions"
" My wife helps me with my tax return, but she had a headache for ten days"
" I could not finish my income tax return, because my spouse left me and took our accountant with him. I am currently looking for a new accountant"
" A wasp in my vehicle triggered me to have an mishap and my tax return, which was inside, was destroyed"
" My hubby told me the deadline was the 31 March"
" I'm too short to reach the post box"
" 2I was simply too hectic-- my very first housemaid left, my 2nd house maid stole from me, and my third maid was very sluggish 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 run-in with a cow"
" My bad back means I can't go upstairs. That's where my income tax return is"
From an accountant in London ... "I've been too hectic sending my customers' tax returns !!".
What is a 'reasonable reason'?

According to HMRC, a sensible excuse is something that stopped you from fulfilling a tax responsibility that you took reasonable care to fulfill, for example:.

your partner or another close relative passed away soon prior to the tax return or payment due date.
you had an unforeseen 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 right before or while you were preparing your online return.
service issues with HM Profits and Customs (HMRC) online services.
a fire, theft, or flood avoided you from completing your tax return.
postal hold-ups that you could not have forecasted.
hold-ups 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 reasonable excuse for missing out on some tax obligations. You must discuss how you were impacted by the coronavirus in your appeal.

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

The portal to apply for the fifth grant is now open. Invites to the website for the 5th and last Self-Employment Income support Scheme (SEISS) grant remain in the procedure of being sent.

In the event that you're eligible, HMRC will get in touch in order to offer you with your own independent claim date. From this point your website will open for you to alter your claim.

The 5th grant is various from the last four grants as there are two levels of grant offered. How much you will receive depends on the click here degree to which your service has actually been struck by Covid -19.

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

The deadline to make the claim is 30 September.

Qualification criteria.

To be eligible for the fifth grant, there are several considerations that should be fulfilled. These include:.

You must carry on a trade which has been negatively impacted by coronavirus.
You should have sent your 2019/20 tax return on or before 2 March 2021.
You must have continued a sell 2019/20 and 2020/21.
You should mean to continue to carry on a trade in 2021/22 at the time you declare the grant.
Your trade needs to have suffered decreased activity, capacity 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 usually expected had you not suffered the reduction in capacity, need or activity .
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 repaid if the applicant is qualified, but, similar to the previous grants, it will go through earnings 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 need to make a statement?

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.

Information on how to calculate your turnover for the grant claim can be discovered here by HMRC.

What qualified applicants will get.

The 5th grant is calculated utilizing either 30% or 80% of approximately three months' trading earnings. The following is how the suitable rate is used:.

If your turnover was down by less than 30% in 2020/21, you will receive a grant worth 30% of three months typical profits. ( Topped at ₤ 2,850).
If your turnover was down by 30% or more in 2020/21, then you will get a grant equal to 80% of three months typical earnings. (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.

You can examine here if you are able to make a claim.

Just like the very first 4 claims, those who are qualified and read more require to make a claim needs to do this themselves using their Government Gateway account-- accountants and representatives are not allowed to make claims on behalf of their customers, as this might activate a scams alert that will postpone payment.

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