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.
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“We also receive absurd expense claims from vet fees for a rabbit to room service at a hotel. It is unfair to make honest taxpayers pick up the bill for other people’s spurious claims, so HMRC will only accept sincere claims such as legitimate expenses for a job.
“If you think you might miss the January 31 deadline, get in touch with us now - the earlier we’re contacted, the more help we can offer.”
The deadline for sending 2016-17 Self Assessment tax returns to HMRC, and paying any tax owed, is January 31 2018. Self Assessment customers can now also submit their return via their Personal Tax Account. It takes five minutes to sign up for an account here.
If you are submitting your 2016-17 Self Assessment return online for the first time, you will need to register for SA Online.
Penalties
HMRC has previously announced that it will treat those with genuine excuses leniently, as it focus our penalties on those who persistently fail to complete their tax returns and deliberate tax evaders. This remains the case, although the excuse must be genuine and it might ask for evidence. Those listed above were all declined on the basis that they were either untrue or not good enough reasons.
Customers who provide HMRC with a reasonable excuse before the January 31 deadline can avoid a penalty after this date.
The penalties for late tax returns are:
- An initial £100 fixed penalty, which applies even if there is no tax to pay.
- After three months, additional daily penalties of £10 per day, up to a maximum of £900
- After six months, a further penalty of five per cent of the tax due or £300, whichever is greater
- After 12 months, another five per cent or £300 charge, whichever is greater.
- There are also additional penalties for paying late of five per cent of the tax unpaid at 30 days, six months and 12 months.
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Susie Hughes © Shout99 2018
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