Self-assessments 2019-2020: the reasonable excuse trap

Just six days before the 31 January 2021 self-assessment filing deadline HMRC announced that it would not charge late filing penalties for taxpayers who missed it – provided they file online on or before 28 February 2021 (see ‘No penalties if returns are filed by 28 February’ Taxation 28 January 2021).

The professional bodies have largely welcomed this announcement having lobbied for HMRC to provide some breathing space for taxpayers – and their agents – because of the pressures of the pandemic. HMRC had already made it clear that taxpayers would have a reasonable excuse if they could not meet the deadline because of the impact of coronavirus and they could appeal late filing penalties on these grounds. It is understood however that the number of taxpayers who had not filed their tax return by the time HMRC made their decision suggested...