Self assessment ― reasonable excuse for late filing

Produced by a Tolley Personal Tax expert

Personal Tax

Guidance

If a penalty has been correctly charged by HMRC, the taxpayer can only appeal if they believe they have a ‘reasonable excuse’ for failing to comply with the legislation. This is discussed below. However, even if the Tribunal finds that the taxpayer does not have a reasonable excuse, it may reduce the amount of the penalty payable due to special circumstances. See Simon’s Taxes A4.567D.

The term ‘reasonable excuse’ is not defined in the legislation and therefore the meaning is continually being reassessed by the courts ‘in light of all the circumstances of the particular case’.

HMRC considers a reasonable excuse to be ‘something that stops a person from meeting a tax obligation despite them having taken reasonable care to meet that obligation’. In order to assess whether the excuse is reasonable, HMRC assesses ‘the experience, knowledge and other attributes of the person who has failed’ when deciding whether the taxpayer has taken reasonable care to meet the obligation.

Therefore, a reasonable

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

TAKE A FREE TRIAL

Popular Articles

Personal Tax

Interest and penalties on late paid tax under self assessment

Interest and penalties on late paid tax under self assessmentInterestIf the capital gains tax, the balancing payment or payments on account of tax and / or Class 4 national insurance contributions (NIC) are paid late, HMRC will charge interest on the amount overdue from the original due date. The

14 Jul 2020 12:00 | Produced by Tolley Read more

Corporation Tax

Terminal trading loss relief

Terminal trading loss reliefTerminal loss relief for trade losses in the final 12 monthsTrading losses incurred by a company in the final 12 months leading up to the discontinuance of trade may be carried back for up to three years from the period beginning immediately before that 12-month period.

14 Jul 2020 13:49 | Produced by Tolley Read more

Corporation Tax

Withholding tax

Withholding taxIntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeUK withholding tax may be reduced under the provisions of a double tax treaty (DTT). Prior to 1 June 2021, payments of interest and royalties made to EU resident associated companies were

14 Jul 2020 14:01 | Produced by Tolley Read more

UU��ֱ��