Tax & Accounting News
HMRC to re-think “reasonable excuse” for submitting late returns
15/11/2011
HM Revenue and Customs is to re-think what it classifies as a “reasonable excuse” for submitting a late return following a number of tribunal defeats.
HMRC says that an excuse for a late tax return is reasonable when an individual cannot submit on time because of “some unforeseeable and exceptional event beyond your control.”
However, with no legislation defining “reasonable”, the tax authority has often distorted this interpretation to force people to pay up fines.
Recent tribunal defeats though have forced them to re-think its interpretation. It is hoped that it will come in line with the tribunal’s approach and accept any strong reason for a late return as sufficient grounds to cancel a penalty.
In the meantime, tax specialists say that if individuals incur a late filling penalty, but have a strong reason fro sending the form in late, then it is worth submitting an appeal.
An appeal can be in any written format but must be sent within 30 days of the penalty notice.
