HMRC must receive certain tax returns and any money owed by certain deadlines throughout the year. These deadlines are focused around a tax year which starts from April 6 and ends the following April 5.
Additionally, interest will be added to the penalty, making the cost even higher.
This could be exacerbated for partnerships as all partners will be charged a penalty if a tax return is late.
Tax returns, like many elements of financial life at the moment, were impacted by coronavirus in recent months.
There is usually a second payment deadline of July 31 if a person makes an advance payment towards their bill, known as a payment on account.
According to the government, a reasonable excuse is something that stopped a person meeting a tax obligation that they took reasonable care to meet, which can include the following examples:
- a partner or another close relative died shortly before the tax return or payment deadline
- the person had an unexpected stay in hospital that prevented them from dealing with their tax affairs
- they had a serious or life-threatening illness
- their computer or software failed just before or while they were preparing their online return
- service issues with HM Revenue and Customs (HMRC) online services
- a fire, flood or theft prevented them from completing their tax return
- postal delays that they could not have predicted
- delays related to a disability they have