What constitutes a 'reasonable excuse' for missing the tax return deadline?

Date: 3rd February 2012

Taxpayers who have yet to file their self-assessment tax returns have now missed the deadline and could face fines of up to £1,600.

However, the Institute of Chartered Accountants in England and Wales (ICAEW) has claimed that all is not lost for those who have a genuine excuse for not meeting the deadline.

The organisation explained that there are some "reasonable excuses" that HM Revenue & Customs (HMRC) will accept for late returns.

Serious illnesses, family bereavements, postal delays, documents lost to theft, flood and fire and Activation Code delays on HMRC's part are all accepted reasons for late filing.

However, claiming the tax return was too complicated, that you were too busy or that you didntt have all the information will not be tolerated.

"There are no hard and fast rules – what is 'reasonable' will depend on the facts of the particular situation. But generally speaking, you may have a reasonable excuse if an unexpected or unusual event beyond your control prevented you from meeting the deadline," the ICAEW explained.

"HMRC's guidance no longer stipulates - as it used to - that a reasonable excuse must be 'exceptional'."

Posted by Emily Smith