10 Worst Late Tax Return Excuses

10 Worst Late Tax Return Excuses.

As the build-up continues towards the self-assessment deadline on 31 January 2016 for the financial year 2014/2015, HMRC has published the 10 worst excuses it received for delayed tax returns last January.

The 10 worst delayed tax return excuses where:

• My tax papers were left in the shed and the rat ate them
• I’m not a paperwork orientated person – I always relied on my sister to complete my returns but we have now fallen out
• My accountant has been ill
• My dog ate my tax return
• I will be abroad on deadline day with no internet access so will be unable to file
• My laptop broke, so did my washing machine
• My niece had moved in – she made the house so untidy I could not find my log in details to complete my return online
• My husband ran over my laptop
• I had an argument with my wife and went to Italy for 5 years
• I had a cold which took a long time to go

Why is it important to file on time?

Penalties. HMRC will fine you for late tax returns.

The penalties for late tax returns are:

• an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time;
• after 3 months, additional daily penalties of £10 per day, up to a maximum of £900;
• after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater; and
• after 12 months, another 5% or £300 charge, whichever is greater.

So, if you are just one day late, you face a £100 penalty. If you are 12 months late, the fine could be £1600 or more with interest charges.

Genuine Excuses

HMRC are not ‘jobs worths’. They do accept that circumstances can take over preventing you from filing you return e.g. unexpected health issues, the recent floods in the North. In fact, for victims of floods where perhaps you records, business and livelihood may have been destroyed, they have even set up a flood victims helpline on 0800 904 7900.

That said, time is now upon us, at Roberts Clark we are head down preparing tax return submissions for many clients and as usual, if too many people leave it until it is too late e.g. 11pm on 31^st January to go online, you may find that the HMRC website cannot cope with the volume and may even crash, it has happened before. Do it now.