Every year, following the 31 January Self-Assessment (SA) deadline, HM Revenue and Customs (HMRC) receives a number of imaginative and intriguing excuses for not completing tax returns on time. Each year also sees some wildly optimistic expense claims. Recent excuses include:

1. I couldn’t file my return on time as my wife has been seeing aliens and won’t let me enter the house.
2.  I’ve been far too busy touring the country with my one-man play.
3. My ex-wife left my tax return upstairs, but I suffer from vertigo and can’t go upstairs to retrieve it.
4. My business doesn’t really do anything.
5. I spilt coffee on it.

As well as the excuses, HMRC also receives some questionable items which taxpayers have tried to expense:

1. A three-piece suite for my partner to sit on when I’m doing my accounts.
2. Birthday drinks at a Glasgow nightclub.
3. Vet fees for a rabbit.
4. Hotel room service – for candles and prosecco.
5. £4.50 for sausage and chips meal expenses for 250 days.

The excuses and expenses listed above were all rejected.

Now that you have read all the funny excuses, don’t be caught out. The deadline for Self-Assessment tax return for tax year ending 5^th April 2021 is:

·      31^st January 2022 – online submission.

·      31^st October 2021 - paper submission  

·      30^th December 2020 – should you want HMRC to collect taxes owed via PAYE code[1]

The penalties for late tax returns are:

·      An initial £100 fixed penalty, which applies even if there is no tax to pay.

·      After 3 months, additional daily penalties of £10 per day, up to a maximum of £900

·      After 6 months, a further penalty of 5% of the tax due or £300, whichever is greater

·      After 12 months, another 5% or £300 charge, whichever is greater.

There are also additional penalties for paying late

·      5% of the tax unpaid at 30 days, six months and 12 months.

·      Deadline to pay the tax you owe: 31^st January 2019

If you require any help with your tax matters please contact us on www.fwco.co.uk