How to use it
- 1Check your reason is the kind HMRC may accept. GOV.UK's list of what doesn't count includes not having enough money, finding the online system too difficult, not getting a reminder and making a mistake on your return.
- 2File the return or pay as soon as you're able to, if you haven't already.
- 3Fill in the statement with dates for everything: when the problem started, when it ended and when you put things right.
- 4If your penalty letter came with an appeal form or online route, use it and copy the statement into the explanation. If not, send it as a signed letter to the HMRC office that deals with your return.
- 5Appeal within 30 days of the date on the penalty notice. If you're later than that, say why.
What each field means
- Reference
- Your Unique Taxpayer Reference, VAT number or the reference on the penalty letter, so HMRC can match the appeal.
- What happened
- The event, and why it stopped you meeting the deadline.
- When it started and ended
- Dates matter: HMRC looks at whether the problem covered the deadline.
- What you did next
- When you filed or paid. GOV.UK says you must do so as soon as you're able to.
- Online problems
- For computer or online service problems, the date you tried to file or pay and any error message.
What HMRC may accept
GOV.UK describes a reasonable excuse as something that stopped you meeting a tax obligation that you took reasonable care to meet. Its examples include a partner or close relative dying shortly before the deadline, an unexpected stay in hospital, a serious or life-threatening illness, a computer or software failure while preparing an online return, problems with HMRC's online services, a fire, flood or theft, and postal delays you couldn't have predicted.
It also lists delays related to a disability or mental illness, and relying on someone else to send your return when they didn't.
What isn't a reasonable excuse
GOV.UK's examples of what won't be accepted: a payment failing because you didn't have enough money, finding HMRC's online system too difficult, not getting a reminder from HMRC, and making a mistake on your tax return.
How and when to appeal
You usually have 30 days from the date the penalty was issued. Follow the instructions on the penalty letter or use the appeal form that came with it; without a form, send a signed letter to the HMRC office that deals with your return. Include your name, your reference such as your UTR, and why the return or payment was late, with dates.
For VAT penalties, the decision letter offers a review, and you have 30 days to accept it or appeal to the tax tribunal.
Licence and disclaimer
Free to use, copy and adapt for your own business or personal records. Please don't resell it or republish it as your own template.
A template is a starting point, not advice for your circumstances. Check the result against the GOV.UK guidance linked below, or ask an accountant.
Related
What else will you need?
- SA370SA370 penalty appealSA370 is HMRC's postal form for appealing a Self Assessment penalty for filing your return or paying your tax late.
- SA100SA100 tax returnThe SA100 is HMRC's main Self Assessment tax return.
- ChecklistSelf Assessment documents checklistBefore you file a Self Assessment return, gather your UTR and National Insurance number, your Government Gateway sign-in, any P60, P45 or P11D, your business and rental income and expense records, interest and dividend statements, details of anything you sold that may have made a gain, and records of pension contributions and Gift Aid.PDF
Rather we did it?
Countify can handle this for you, for a fixed fee agreed upfront.
Questions
Frequently asked questions.
How long do I have to appeal a penalty?
Usually 30 days from the date the penalty was issued. If you miss that, you'll need to give a reason for the late appeal.
Is not getting a reminder a reasonable excuse?
No. GOV.UK lists not getting a reminder from HMRC as an excuse it won't accept.
My accountant didn't file my return. Is that a reasonable excuse?
It can be. GOV.UK includes relying on someone else to send your return, when they didn't, among the examples HMRC may accept.
Do I still need to file or pay?
Yes. GOV.UK says you must send your return or payment as soon as you're able to.
Checked against GOV.UK on · Reviewed by Kamran Ishaq FCCA, Founder & CEO, on .
Sources: Tax appeals: reasonable excuses (opens in a new tab) (HM Revenue & Customs); Disagree with a tax decision: appeal a penalty (opens in a new tab) (HM Revenue & Customs).