Reasonable excuse for late filed return

The taxpayer filed his 2016-17 self assessment tax return late. HMRC imposed penalties against which the taxpayer appealed. He said he had been ‘profoundly unwell’ with a ‘life-threatening’ illness from December 2016 to December 2018 to the extent he had been unable to deal with his tax affairs.

The First-tier Tribunal agreed that the notices to file and of penalties had been issued correctly. The taxpayer had offered no explanation for his failure to file other than a ‘bald assertion of illness’. Had he been incapacitated in a long-term manner, the taxpayer should have made arrangements to deal with his tax obligations. He was experienced in filing online and must have been aware of the possibility of penalties for late submission. The tribunal concluded he did not have a reasonable excuse nor were there special circumstances.