Real excuses people have given HMRC for late tax returns… and the benefits of filing early and paying later
Every year, thousands of taxpayers find themselves scrambling to explain to HMRC why their Self Assessment return is late.
Some excuses are perfectly reasonable and understandable… life happens! But, some are… inventive!
HMRC published a selection of the more creative excuses it receives each year, and they make for quite the read. Here are some of our favourites:
“My wife has been seeing aliens”
“My mother-in-law is a witch and she put a curse on me.”
“I fell in with the wrong crowd.”
And, our personal favourite:
“Rodents ate my receipts”
This one actually went all the way to a First-tier Tribunal!
A taxpayer claimed his expense receipts, that were stored in his loft, had been eaten by rodents. His bank records also partially consumed, as well as his cash payment receipts.
The tribunal was not persuaded, and found the behavior deliberate, and upheld both the additional tax and the penalty.
The lesson here: Digital record-keeping is rodent proof!
(If you’re not on the ball with cloud-accounting software yet, ahead of Making Tax Digital, we offer training… our contact details are at the end of this post if you’d like to book! 😉)
Funny as they are, the consequences are very real.
Penalties, interest charges, and in some cases, tribunal proceedings… it’s not worth it!
And, really, most of the stress around Self Assessment tax return comes down to one thing: leaving it too late!
So, here’s now to make sure you’re never scrambling for an excuse ahead of the January deadline:
- File early. Pay later. It’s that simple!
One of the biggest misconceptions we hear is that filing your tax return early means paying your tax return early. It doesn’t!
The payment deadline is always 31st January, no matter when you file.
You could submit your return in April or May and your tax still isn’t due until January. Filing early simply means you know how much you owe well in advance, so there are no nasty surprises.
- You could reduce your July payment on account
If you file before 31st July and your tax liability is lower than the previous year, your second payment on account (due on 31st July) can be reduced in line with your actual liability. This could mean money saved, or at least not paid out unnecessarily right in the middle of summer!
- Any refunds come back to you sooner
If you’ve overpaid tax, the sooner you file the sooner HMRC processes your refund. Why sit and wait until January for that? You could put it towards a summer holiday or the festive season!
- You can plan ahead, rather than panic
Knowing what you owe months before it’s due means you can budget for it, set money aside gradually, or simply sleep better at night. January is a lot less stressful when you’ve known the number since October!
And… we can give your return the attention it deserves!
The run-up to 31st January is the busiest time of the year, for accountants and for HMRC alike. The earlier you get your information to us, the more time we have to make sure everything is accurate, ask any questions, and get everything filed without the last-minute rush to make the deadline. (Our deadline for information is actually October each year!😅)
So, what do we need from you, and when?
As mentioned above, we ask that you get your records and information over to us by October. That gives us plenty of time to work through everything carefully and get your return submitted well ahead of the deadline.
Not sure what you need to pull together? Get in touch and we’ll point you in the right direction, or refer to the questions/checklist that we send over at the start of each tax year.
So, take action now and get it out of your head and ticked off your checklist.
And… please back up your receipts on software and don’t leave them anywhere rodents or extraterrestrial beings can reach them 😅
As always, if you have any questions, we’re here to help.
You can give us a call on 01872 267 267, message us via WhatsApp on 0777 49 39 111, or email us at [email protected].
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