HMRC: 10 Reasons You Might Escape a £100 Self-Assessment Penalty

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HMRC: 10 Reasons You Might Escape a £100 Self-Assessment Penalty
TAXHMRCSELF-ASSESSMENT
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HMRC has revealed 10 valid excuses that could exempt taxpayers from a £100 penalty for missing the self-assessment deadline. From unexpected hospital stays to technical issues, several circumstances qualify as 'reasonable excuses'. Millions of taxpayers successfully filed their returns, while others face penalties unless they can provide a valid reason for their late submission.

The UK's tax authority, HMRC , has outlined 10 valid reasons that could exempt taxpayers from a £100 penalty for missing the self-assessment deadline. HMRC defines a 'reasonable excuse' as an unforeseen circumstance that prevented an individual from fulfilling their tax obligation, despite taking reasonable care to do so.

Examples provided by HMRC include the death of a partner or close relative shortly before the tax return or payment deadline, an unexpected hospital stay that hindered tax management, and serious or life-threatening illnesses. Technical issues like computer or software failure while preparing an online return, or disruptions to HMRC's online services, are also considered valid excuses. Other acceptable reasons encompass a fire, flood, or theft preventing the completion of a tax return, unpredictable postal delays, delays due to disability or mental illness, and a misunderstanding or lack of awareness regarding the legal tax obligation. If an individual relied on someone else to submit their return and they failed to do so, this is also deemed a valid excuse. HM Revenue and Customs (HMRC) estimates that 1.1 million people missed the deadline for filing their annual tax returns. Individuals who missed the self-assessment deadline face a minimum penalty of £100, as stated by the tax authority, unless they can present a legitimate reason for their delay. Despite this, HMRC reported that over 11.5 million people successfully completed the self-assessment process, with more than 31,000 finishing in the last hour before the cut-off, according to Birmingham Live. Self-employed individuals and those with multiple income sources are among those required to submit a tax return annually. This news follows recent denials by HMRC of accusations that it operates a 'deliberately poor' telephone service to encourage taxpayers to use online support instead. Jim Harra, Chief Executive of HMRC, labelled the allegations made by a committee of MPs regarding its customer service as 'completely baseless'

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