What is a good excuse for a late tax return?
Jan 25 2008
With just one week to go until the tax return deadline, the Federation of Small Businesses (FSB) is calling on HM Revenue and Customs to be more lenient on the late filing of around half a million self-assessment tax forms.
Currently, the taxman expects people to have completed the majority of their return by now – so even getting struck by lightning on the 30th, or getting hit by a bus, and living to tell the tale, is unlikely to be accepted as a reasonable excuse.
It’s estimated that ten per cent of the 4.5 million small businesses in the UK will not submit their self-assessment tax return form by the 31 January deadline. In 2005/2006, this equated to £84 million in fines. If people get their tax form in one month after the fine is issued, the Inland Revenue can start adding a five per cent surcharge on any outstanding tax, plus commercial interest. After that, the taxman can estimate your tax liability, which is unlikely to be in your favour.
This video from the Federation of Small Businesses deals with the accepted excuses for handing in your tax return late.
Click here to download the video.
If you have problems playing it in Windows Media Player, try using VLC media Player. You can download it by clicking here.
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