OK, so its that time of year….
… when small businesses are rushing around trying to find those scraps of paper that will reduce their tax liability, and hating themselves for putting them somewhere ‘really safe’ that just doesn’t come to mind right now. There are valid reasons for completing your return late, however over the years there have been many creative ones, and to lighten your day here’s a small selection of my favourites.
- My pet dog ate my tax return… and all the reminders.
- I was up a mountain in Wales, and couldn’t find a post box or get an internet signal.
- I fell in with the wrong crowd.
- I’ve been travelling the world, trying to escape from a foreign intelligence agency.
- Barack Obama is in charge of my finances.
- I’ve been busy looking after a flock of escaped parrots and some fox cubs.
- A work colleague borrowed my tax return, to photocopy it, and didn’t give it back.
- I live in a camper van in a supermarket car park.
- My girlfriend’s pregnant.
- I was in Australia.
and my personal favourite…
- My goldfish died
HMRC will accept valid reasons in the case of exceptional circumstances, which tend to be something unexpected and outside of your control. The death of a partner, fire in your home or office, a stay in hospital or a major computer failure during preparation of your return may be accepted as reasonable excuses for a late return. However insufficient funds or difficulty in using HMRC’s online services are not accepted.
Penalties can mount up quickly, with an immediate fixed penalty of £100.00 for a late return. Beyond 3 months late HMRC will fine at a rate of £10.00 per day, so a total of £900.00. At 6 months they will then fine 5% of the tax due or a further £300.00, whichever is the greater.
And unfortunately it doesn’t stop there. Beyond 12 months late there are further penalties and interest of 3% per day.
Help can be found on the HMRC website at Get Help With Tax or by calling the Self Assessment Helpline on 0300 200 3310. However the waiting times can be in excess of 10 minutes so coffee might be helpful.
Good luck to all those still battling though their return. See you on the other side.
