Missed your Corporation Tax filing deadline with HMRC? You can still avoid late filing penalties.
Have you been issued a penalty notice from HMRC for not filing your corporate tax returns? Worry not. You may still be exempt from late filing penalties if you are a victim to a valid, excusable reason. In the UK, companies have to file their corporate tax returns in iXBRL format within 12 months after the end of the accounting period or within 3 months after the notice from HMRC. HMRC allows appeals for penalties for late returns in the case of a reasonable excuse; they want to extend leniency to people affected by genuine reasons while simultaneously preventing deliberate fraud.
If the tribunal or HMRC agrees you have a reasonable excuse, the penalty is waived.
Here is a list of subjects that are considered valid reasons or reasonable excuses:
- Your partner or another close relative died just before the tax return or the payment deadline.
- You had an unexpected stay in the hospital that prevented you from managing your tax affairs.
- You have a serious and/or life-threatening illness
- While preparing for your return online, your computer or software has recently failed or malfunctioned.
- Service problems with the online services of HM Revenue and Customs (HMRC).
- A loss from a disaster like fire, flood or theft prevents you from filing your tax return.
- Postal delays that you could not foresee.
- Delays associated with a disability you have.
There are also a few reasons that have been rejected in previous years.
The following are some excuses that HMRC does not consider valid:
- You trusted someone to send your return and they failed.
- Your cheque bounced or your payment is unsuccessful because you do not have enough money.
- You found HMRC’s online system very difficult to use.
- You did not receive a reminder from HMRC.
- You made an error in the tax return.
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