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

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

Sending just one day late can lead to a ₤ 100 late filing penalty. This quantity can increase substantially the longer you leave it (estimate your penalty here).

HMRC do state however, that you can appeal against a charge if you have a "reasonable excuse".

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

Each year, HMRC offers us a look into a few of the more 'interesting' excuses that taxpayers have attempted and failed, to utilize. Here's a sample of them:

" I had an argument with my partner and went to Italy for 5 years"
" My tax papers were left in the shed and the rat consumed them"
" My husband ran over my laptop"
" My niece had moved in-- she made your house so untidy I might not discover 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 web signal"
" My mother-in-law is a witch and put a curse on me"
" I have actually been travelling all over the world in my luxury yacht, and just getting post when I'm on dry land"
" My kid scribbled 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 assists me with my tax return, but she had a headache for 10 days"
" I could not finish my income tax return, because my hubby left me and took our accountant with him. I am currently searching for a brand-new accountant"
" A wasp in my automobile triggered me to have an accident and my tax return, which was within, was ruined"
" My spouse told me the deadline was the 31 March"
" I'm too short to reach the post box"
" 2I was simply too busy-- my first maid left, my 2nd housemaid stole from me, and my third maid was very slow to find out"
" My boiler had actually broken and my fingers were too cold to type"
" My other half will not offer me my mail"
" I had a confrontation with a cow"
" My bad back means I can't go upstairs. That's where my tax return is"
From an accountant in London ... "I've been too hectic submitting my customers' tax returns !!".
So what is a ' affordable excuse'?

According to HMRC, a affordable reason is something that stopped you from satisfying a tax commitment that you took reasonable care to meet, for example:.

your partner or another close relative died quickly prior to the tax return or payment deadline.
you had an unanticipated stay in the health center that prevented you from dealing with your tax affairs.
you had a severe or life-threatening disease.
your computer or software application stopped working just before or while you were preparing your online return.
service problems with HM Earnings and Custom-mades (HMRC) online services.
a theft, fire, or flood avoided you from finishing your income tax return.
postal delays that you might not have actually predicted.
hold-ups connected to a impairment you have.
Does coronavirus (COVID-19) count as a affordable reason?

Because of the remarkable situations over the last 17 months, HMRC will consider coronavirus as a reasonable excuse for missing out on some tax responsibilities. You need to explain how you were impacted by the coronavirus in your appeal.

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

The website to apply for the fifth grant is now open. Invites to the website for the last and fifth Self-Employment Earnings support Plan (SEISS) grant are in the process 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 check here claim date. From this point your portal will open for you to alter your claim.

The 5th grant is different from the last 4 grants as there are two levels of grant readily available. How much you will get depends on the level to which your service has been struck by Covid -19.

You can declare the fifth grant if you think that your business revenue has been impacted by coronavirus (COVID-19) in between 1 May 2021 and 30 September 2021, and you meet the eligibility requirements.

The due date to make the check here claim is 30 September.

Eligibility criteria.

To be qualified for the 5th grant, there are a number of factors to consider that must be satisfied. These consist of:.

You must carry on a deal which has actually been adversely impacted by coronavirus.
You should have submitted your 2019/20 income tax return on or prior to 2 March 2021.
You must have continued a sell 2019/20 and 2020/21.
You need to mean to continue to carry on a trade in 2021/22 at the time you claim the grant.
Your trade should have suffered reduced activity, capacity or demand in the period 1 May 2021 to 30 September 2021.
At the time that you make the claim, you should reasonably think that you will suffer a significant decrease in trading revenues compared to what you would have normally anticipated had you not suffered the decrease in activity, capability or demand .
When deciding whether the decrease is substantial, candidates will require to consider their larger company circumstances. New guidance on how trading conditions affect eligibility can be found here
.

The grant does not need to be paid back if the candidate is qualified, however, similar to the previous grants, it will go through earnings tax and National Insurance, and will require to be stated on the 2021-22 income tax return.

Proof must be maintained to sustain claims made.

What do you need to make a statement?

To make the claim you will need to have 2 various 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.

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 computed utilizing either 30% or 80% of an average of three months' trading revenues. The following is how the proper rate is applied:.

You will get a grant worth 30% of 3 months average revenues if your turnover was down by less than 30% in 2020/21. ( Topped at ₤ 2,850).
You will receive a grant equivalent to 80% of three months typical earnings 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 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 website will be readily available.

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

Similar to the very first four claims, those who are eligible and need to make a claim should do this themselves using their Government Entrance account-- representatives and accountants are not allowed to make claims on behalf of their customers, as this may set off a fraud alert that will delay charge.

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