TTF Tackles the Money Monster Under Your Bed: I've Missed the Self-Assessment Deadline but I Don't Think it's my Fault

"The past few months have been a whirlwind. I’ve been in and out of hospital due to a serious health issue. Between endless medical appointments, treatments, and recovery time, filing my taxes was the last thing on my mind. I know that the deadline has now passed.

I'm feeling in a more stable place but am still incredibly tired. Slowly, I’m now trying to get myself organised and catch up on the things that I've had to let slide over the last few months. In relation to my tax return, I can’t help but feel it’s unfair to face penalties for something that was completely out of my control. I didn’t deliberately put this off. I physically couldn’t manage it during those difficult months.

The automatic late-filing penalties are tough pill to swallow. I know there’s an immediate £100 fine if you miss the deadline, and if you delay further, the costs just keep piling up. It’s stressful to think that these charges are adding up while I’m still trying to get back on my feet.

But what can I do? Is it even worth contacting HMRC to explain my circumstances, or should I just accept the penalty and pay it? I’ve read that HMRC can sometimes be sympathetic if you have a "reasonable excuse," and surely being seriously ill counts. I wouldn’t wish what I’ve been through on anyone.

For now, I’ve gathered all my documents and I’m ready to file the return. It’s a relief to have a bit of stability in my life again. All I want is to move forward without being punished too harshly for circumstances I couldn’t control. I'm hopeful that next year will be much smoother."

Thank you for sharing your experience. I'm truly sorry to hear about the tough few months you've endured. Being in and out of hospital, especially with a serious condition, would make it difficult for anyone to manage something as complex and time-sensitive as a self-assessment tax return. It’s completely understandable that this slipped through the cracks while you were focused on your health.

The good news is that HMRC does recognise that life events like yours can qualify as a "reasonable excuse" for missing the deadline. Based on their guidelines, the following are valid reasons for appealing a late-filing penalty:

• Unexpected hospital stay – If you were in hospital and couldn’t manage your tax affairs, this is a legitimate reason to appeal.

• Serious or life-threatening illness – HMRC may consider your circumstances as a reasonable excuse if your health condition prevented you from meeting the deadline.

• Bereavement – If a partner or close family member passed away around the deadline, this can also be grounds for appeal.

• Computer or software failure – If you experienced technical problems while filing your return, HMRC may waive the penalty.

• Issues with HMRC’s online services – If their services were down and caused delays, this is another valid reason.

• Fire, flood, or theft – Events like these that disrupt your ability to file can be used in an appeal.

• Unpredictable postal delays – If you sent a paper return and it was delayed by unforeseen postal issues, this may qualify.

• Disability or mental illness-related delays – HMRC can consider delays related to your physical or mental health conditions.

• Misunderstanding your legal obligation – If you were genuinely unaware of your obligation or misunderstood it, you may have grounds to appeal.

• Reliance on a third party – If you trusted someone else to handle your return and they didn’t submit it, this could also count.

Since your hospital stay fits within these criteria, it's definitely worth contacting HMRC to explain your situation. Here's what you need to know:

• You typically have 30 days from the date the penalty was issued to contact HMRC or submit an appeal.

• If you've already passed the 30-day window, you’ll need to provide a reason for the late appeal.

• You can appeal the penalty either online via your HMRC account or by calling HMRC’s helpline. Make sure to have any relevant details, such as hospital records or timelines, to support your case.

I hope this helps bring some clarity and reassurance. You’ve been through a lot, and HMRC does acknowledge genuine hardships like yours. It’s worth trying to appeal before accepting the penalty. Wishing you a smooth resolution and continued recovery.

Capital Gains Tax Expertise: The Tax Faculty LLP Managing Partner Charles Tateson Named UK Capital Gains Tax Advisor of the Year 2023

The Finance Monthly Taxation Awards recognises the achievements of tax professionals from around the globe.

Winning such an award is no small feat. It is a reflection of hard work, extensive knowledge, and an ability to navigate the intricacies of the UK tax system.

Read more about Charles and the award here.

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