If you’ve missed a tax filing or payment deadline, the next thing you’re probably worrying about is penalties.
In some cases, you can appeal – but only if you have what HMRC calls a “reasonable excuse”. The challenge? The bar for this is set quite high, and there’s no simple legal definition.
In this blog, we’ll walk through what HMRC look for, what might count as a reasonable excuse, and what almost certainly won’t.
There’s no fixed legal definition
There isn’t a statutory definition of “reasonable excuse”.
Instead, HMRC look at:
- The situation itself – what actually happened.
- Your personal circumstances and abilities – for example, health, disability, or other factors.
That means an excuse that might be reasonable for one person may not be reasonable for someone else. It’s all about the context.
How HMRC decide what’s “reasonable”
HMRC’s general approach is to ask:
What would a reasonable person with the same attributes and abilities, who genuinely wanted to comply, have done in the same situation?
A reasonable excuse is something that:
- Was outside your control, and
- Stopped you from meeting your tax obligations at that time.
They also expect you to put things right as soon as you reasonably can once that excuse no longer applies.
Examples HMRC may accept as a reasonable excuse
On Gov.uk, HMRC give some examples of situations that might be accepted as a reasonable excuse for missing a deadline. These include where:
- Your partner or a close relative died shortly before the deadline.
- You had an unexpected stay in hospital that prevented you dealing with your tax affairs.
- You had a serious or life-threatening illness.
- Your computer or software failed while you were preparing your return online.
- You experienced problems with HMRC’s online services.
- You were prevented from completing your return because of a flood, fire or theft.
- The deadline was missed due to unpredictable postal delays.
- The delay related to a disability or mental illness you have.
- You were unaware of, or misunderstood, your legal obligations.
- You relied on someone else (for example, an adviser) to do your return and they failed to do so.
In all of these cases, HMRC will still expect you to file or pay as soon as you’re able.
What HMRC usually won’t accept
Some excuses are almost guaranteed to fail with HMRC – a bit like “the dog ate my homework”.
HMRC generally do not accept:
- A cheque or payment bouncing because there wasn’t enough money in your account.
- Saying you found the HMRC system too difficult to use.
- Missing the deadline because you didn’t get a reminder.
- Simply saying you made a mistake on the return.
These are usually seen as things that a “reasonable person” could have managed or allowed for.
What to do if you think you have a reasonable excuse
If you believe you do have a reasonable excuse, it’s important to:
- Get up to date – file the return or make the payment as soon as you can.
- Explain clearly – when you appeal the penalty, set out:
- What happened
- When it happened
- Why it stopped you meeting the deadline
- When you were able to put things right
- Provide evidence where possible – for example hospital letters, emails about system failures, insurance reports, etc.
The more clearly you can show that the issue was outside your control, and that you acted promptly once you could, the better your chances.
Need help dealing with HMRC penalties?
Working out whether your situation counts as a “reasonable excuse” isn’t always straightforward – and the wording of your appeal can make a big difference.
If you’re a UK business owner facing a penalty, or worrying about one, we’re here to help.
Get in touch with Jon and the team to talk through your position and your options before you pay a penalty you might not actually owe.
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Any questions?
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