SAM10090 – Appeals, postponements and reviews: appeals: grounds of reasonable excuse: FAP

The Legislation does not define reasonable excuse.

Each case must be considered on its own facts. A reasonable excuse can only exist where an exceptional event beyond the control of the taxpayer prevented completion and return of the tax return by the due date.

Examples of what you may agree as grounds of reasonable excuse

The taxpayer did not receive the return

Where you are satisfied that the taxpayer did not receive the return, for example, it is returned undelivered.

The completed return was lost or delayed in the post

The taxpayer is expected to allow sufficient time for the return to reach you. However if the return was posted in good time and an unforeseen event occurred which disrupted the normal post service and led to loss or delay of the return, for example fire or flood at the Post Office where the return was handled or prolonged industrial action by the Post Office, would be considered reasonable excuse.

Loss of tax records

You should normally agree as a reasonable excuse loss of records through fire, flood or theft, although you should be satisfied that the information for completion of the return could not be replaced in time for the taxpayer to complete the return by the due date.

Serious illness

The illness must be so serious that it prevented the taxpayer from controlling his business affairs immediately before the deadline and from that date to the time the completed return is received. Coma, heart attack, stroke or any other serious or life threatening illness constitutes a reasonable excuse.

Where the illness involves a lengthy stay in hospital or convalescence the taxpayer should normally have made arrangements for completing and sending in the tax return on time. There may however be circumstances where this was not possible.

The serious illness of a close relative or domestic partner should only be accepted if the situation took up a great deal of the taxpayer’s time and attention during the period from the filing date to the date the return is received.

Bereavement

The death of a close relative or domestic partner shortly before the filing date should be treated as a reasonable excuse, as long as steps had already been taken to complete the return on time.

Tax return too difficult

The taxpayer should have taken early steps to contact you or a tax advisor for assistance in order to complete the return by the due date.

Pressure of work

The time given for completion of a return is considered to be sufficient to allow the taxpayer to arrange his affairs to ensure that the return is completed by the due date.

Failure by tax agent

Failure by agent would not normally be treated as a reasonable excuse. It is the responsibility of the taxpayer to ensure that the return is completed and delivered on time.

Lack of information

Where the taxpayer is unable to obtain all the information needed to complete the return, the guidance issued with the return states that estimated information and an explanation in the additional information space should be submitted.

Absence of HMRC reminders

Normally reminders are issued before the return due date but lack of receipt of a reminder should not be treated as a reasonable excuse. The tax return itself shows the due date and it is the taxpayer’s responsibility to ensure that the return is received by that date.

Note: Reasonable excuse for late partnership returns

Only the representative partner can have a reasonable excuse for not sending the partnership return back by the due date. The circumstances of the other partners are not normally relevant but you should consider the facts of each case on its own merits.