HMRC accepts a reasonable excuse when something stopped the taxpayer meeting a deadline despite taking reasonable care, such as a close relative’s death shortly before the deadline, an unexpected hospital stay, a fire or flood, or a failure of HMRC’s online services. Lack of money, finding the system hard to use, no reminder from HMRC and pressure of work are normally rejected. The excuse must exist at the deadline, and the return or payment must be sent without unreasonable delay once it ends.
A reasonable excuse is an unexpected event, outside the taxpayer’s control, that stopped them filing or paying on time despite reasonable care. Death of a close relative, unplanned hospital stays, serious illness, fire, flood, theft and HMRC system failures can qualify. Lack of funds, no reminder, work pressure and finding the system difficult usually fail.
Key points
- There is no statutory definition. HMRC treats a reasonable excuse as something that stopped a person meeting an obligation despite reasonable care (HMRC manual CH160200).
- The excuse must exist on or before the deadline (CH160100).
- Insufficient funds and reliance on someone else are excluded by law unless specific conditions are met (Finance Act 2009, Schedule 55, paragraph 23).
- The failure must be put right without unreasonable delay after the excuse ends.
- You usually have 30 days from the date of the penalty to appeal (GOV.UK).
Terms used in this guide
- Reasonable excuse: something that stopped a person meeting a tax obligation despite taking reasonable care, judged on the facts and the person’s own circumstances.
- Without unreasonable delay: the requirement to file or pay promptly once the excuse has ended, judged objectively by HMRC or the tribunal.
- Statutory review: a further look at a disputed penalty decision by HMRC, offered when an appeal is not agreed.
- First-tier Tribunal: the independent tribunal that hears tax appeals HMRC has not resolved.
HMRC’s definition of a reasonable excuse
The phrase has its ordinary meaning, and each case turns on its facts and on the person’s own abilities and circumstances. HMRC’s Compliance Handbook says the excuse must exist on or before the date of the obligation, the person appealing must satisfy HMRC that it existed, and a combination of events can amount to a reasonable excuse even where no single event would (CH160100).
Tribunals apply the four-stage test from Perrin v HMRC [2018] UKUT 156: establish the facts the taxpayer relies on, decide which are proven, decide whether those facts objectively amount to a reasonable excuse and when it ended, then decide whether the failure was remedied without unreasonable delay after that. Writing an appeal in that order makes it easier for HMRC to agree.
Reasonable excuse examples that can work, and the conditions attached
GOV.UK lists the following as situations that may be a reasonable excuse (GOV.UK: reasonable excuses). The right-hand column is what we would want on file before relying on each one.
| Example from GOV.UK | What makes it stand up |
|---|---|
| A partner or close relative died shortly before the deadline | Date of death close to the deadline; death certificate; who was dealing with the tax affairs |
| An unexpected stay in hospital prevented the person dealing with their tax affairs | Admission and discharge dates; evidence it was unplanned |
| A serious or life-threatening illness | Medical evidence covering the period up to the deadline |
| The computer or software failed while preparing the online return | Date of failure; repair records; evidence the return was being prepared in time |
| Problems with HMRC online services | Screenshots, error messages, the time of attempts, any HMRC service status notice |
| A fire, flood or theft prevented completion of the return | Insurance or police reference; dates |
| Postal delays that could not have been predicted | Proof of posting date that allowed normal delivery time |
| Delays related to a disability or mental illness | How the condition affected the person’s ability to act at the time |
| The person was unaware of or misunderstood their legal obligation | Why that was reasonable for this person, given their experience |
| The person relied on someone else to send the return, and they did not | The reasonable care the taxpayer took, such as instructing in good time and checking it had been done |
The last row needs particular care. The legislation says reliance on another person is not a reasonable excuse unless the taxpayer took reasonable care to avoid the failure (FA 2009 Sch 55 para 23). “My accountant forgot” will not carry an appeal on its own. “I sent everything in October, chased twice in January and was told it had been filed” is a stronger starting point.
Examples that are commonly rejected
| Reason given | Why it fails | Source |
|---|---|---|
| Not enough money; payment bounced | Insufficient funds is excluded by law unless caused by events outside the person’s control | GOV.UK; CH160800 |
| The HMRC online system was too difficult | Listed by GOV.UK as not accepted | GOV.UK |
| No reminder from HMRC | Taxpayers are expected to know their own deadlines | CH160800 |
| A mistake on the tax return | Listed by GOV.UK as not accepted | GOV.UK |
| Pressure of work | Not normally accepted | CH160800 |
| Lack of information | Not normally accepted | CH160800 |
| Something that happened after the deadline | The excuse must exist on or before the deadline | CH160100 |
Showing you fixed the failure without unreasonable delay
A valid excuse only protects the taxpayer for as long as it lasts. After it ends, the return or payment has to follow without unreasonable delay. GOV.UK puts it simply: send the return or payment as soon as you are able to. In Perrin, about two months passed between HMRC’s letter and the taxpayer putting the failure right, and the tribunal examined that gap closely.
In practice, every appeal should include three dates: when the excuse started, when it ended, and when the return was filed or the tax paid. If the gap between the last two is more than a few days, explain it. A client who came out of hospital on 3 February and filed on 10 February has a better story than one who filed in April.
Writing the excuse: structure and evidence
- Identify the penalty. Name, UTR or other reference, tax year, penalty type and date of the notice.
- State the facts in date order. What happened, when, and who it affected. Keep it to the facts that caused the failure.
- Link the facts to the failure. Explain why those events stopped the return or payment being made by the deadline, despite reasonable care.
- Show the remedy. When the excuse ended and when the failure was put right.
- List the evidence. Attach what you have and say what you can provide on request.
- Ask for the outcome. Cancellation of the penalty.
A short paragraph you can adapt:
On [date], [number] days before the filing deadline, [client] was admitted to hospital as an emergency and remained there until [date]. Their records had been with us since [date] and the return was ready for their approval, which they could not give while in hospital. They approved the return on [date], and we filed it the same day. We ask HMRC to accept this as a reasonable excuse and cancel the penalty. Discharge papers are attached.
Does the same test apply to a corporation tax penalty appeal?
Yes. HMRC’s Company Taxation Manual applies the same approach to late company tax returns: there is no statutory definition, each appeal is considered on its merits, and the failure must be put right promptly once the excuse ends (COM100100). The examples above apply to a CT600 filed late. The evidence should show why none of the company’s officers could file.
Agent tips
- Diary the 30-day appeal window the day a penalty notice is logged. If you miss it, the appeal must explain why it is late. Our guide to the SA370 form and online appeals covers the routes for Self Assessment penalties.
- Agree the facts with the client in writing before you submit. The appeal is their account of events.
- If HMRC rejects the appeal, you will be offered a review, and the case can go to the tax tribunal (GOV.UK).
- Write each appeal around that client’s own dates and evidence. Generic wording gives HMRC nothing to accept.
- Where the practice itself caused the delay, discuss it with the partner before anything is sent.
How to avoid late filing penalties with HMRC in the first place
Most late filings are preventable. Records requested in September for a January deadline, a written chase cycle, a file note each time the client is told about a deadline, and a one-week internal cut-off before 31 January remove most of the risk. If a genuine excuse then arises, that paper trail is the evidence of reasonable care.
Our practical guide to appealing HMRC late filing and late payment penalties covers routes and forms. Companies House applies a stricter test, explained in our post on appealing a Companies House late filing penalty.
FAQs
What counts as a reasonable excuse for HMRC?
A reasonable excuse is something that stopped you meeting a tax deadline even though you took reasonable care. GOV.UK examples include a close relative’s death shortly before the deadline, an unexpected hospital stay, serious illness, a fire, flood or theft, computer failure while preparing the return, and problems with HMRC’s online services. The excuse must exist at the deadline and you must act promptly once it ends.
Is lack of money a reasonable excuse for late payment?
Usually not. The law says insufficiency of funds is not a reasonable excuse unless it was caused by events outside the person’s control. HMRC’s manual adds that the person must have used reasonable foresight and due diligence. A payment that bounced because the account was short of money is listed by GOV.UK as not accepted.
Is relying on my accountant a reasonable excuse?
Only if you took reasonable care yourself. The legislation says reliance on another person is not a reasonable excuse unless the taxpayer took reasonable care to avoid the failure. Giving your accountant everything in good time, asking whether the return was filed and receiving a clear assurance is the kind of evidence that helps. Simply leaving it to the accountant usually does not.
How long do I have for an HMRC penalty appeal?
You usually have 30 days from the date the penalty was issued to appeal or contact HMRC. If you miss that window, you can still ask HMRC to accept a late appeal, but you need to explain why it was late. If HMRC does not change its decision, you will be offered a review and can take the case to the tax tribunal.
Does the excuse need to exist before the deadline?
Yes. HMRC’s guidance says the excuse must exist on or before the date of the obligation. Something that happened after the deadline cannot excuse a failure that had already occurred. It may, however, explain a further delay in putting things right, which matters for the “without unreasonable delay” part of the test.
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