COM100100 - Penalties: late delivery of returns: reasonable excuse
This subject is presented as follows
Reasonable excuse
Request for further time
Reasonable excuse
The statutory filing date (Word 42KB) for a return is at least 12 months after the end of the AP. In most cases COTAX issues a reminder about one month before that date if a return has not been logged.
The normal amount of time allowed should therefore be adequate to keep successful claims for reasonable excuse to a minimum.
There will, nevertheless, be a few occasions each year when companies make every endeavour to meet their filing obligations, but fail by reason of unforeseen misfortune.
It is not the intention to penalise such companies, provided that
- There was a reasonable excuse for the failure
And
- It was remedied as soon as could reasonably be expected after the excuse had run out
There is no statutory definition of ‘reasonable excuse’.
For further information about ‘reasonable excuse’ see the Enquiry Manual at EM5152 and the CT Manual at CTM94140 and CTM94150.
Request for further time
A company may request further time in which to deliver its return when it does not expect to meet its filing date. It may make the request at any time before delivery of the return.
If you agree to the request the company will not be liable to a penalty if it delivers its return within the further time allowed.
For further information about ‘further time’ see the CT Manual at CTM94130.
In considering a request for further time you should apply the reasonable excuse provisions described at CTM94140 and CTM94150.
If you accept that a company has a reasonable excuse for the anticipated delay, you should allow further time, up to the date when you expect the reasonable excuse to cease.
You notify an agreement of further time to COTAX by using Function RDAC (Record Filing Date Adjustment) to enter a deferred filing date (Word 28KB).
For a list of functions to use in particular situations, see COM100012.
For legislation applying to this subject, see COM100013.
