Penalties for Failure to File on Time: in what circumstances is a penalty payable: reasonable excuse: what is not a reasonable excuse
While you must consider all relevant circumstances, there are some situations which we will not normally accept alone as a reasonable excuse.
- The tax return is too difficult to complete.
- Pressure of work.
- Lack of information.
- HMRC did not remind me.
- Ignorance of basic law.
What is or is not a reasonable excuse is personal to the individual’s abilities and circumstances. Those abilities and circumstances may mean that what is a reasonable excuse for one person may not be a reasonable excuse for another.
The law specifies two situations that are not reasonable excuses. These are
- shortage of funds, see CH61620 for more detail and an exception, and
- reliance on another person, see CH61640 for more detail and an exception.