Reasonable excuse: what HMRC accepts for late filing and payment

HMRC cancels a late filing or late payment penalty if you had a reasonable excuse: something outside your control that stopped you meeting the deadline even though you took reasonable care. Accepted examples include a close relative dying shortly before the deadline, an unexpected hospital stay and HMRC’s own online services failing. Not having the money, not getting a reminder and finding the system hard to use do not count.

What is a reasonable excuse?

There is no legal definition. HMRC’s Compliance Handbook at CH160100 describes it as “something that stops a person from meeting a tax obligation despite them having taken reasonable care”.

The burden is on you to show it. The excuse must have existed at the time of the failure, on or before the deadline, and must cover the whole period you were late.

What does HMRC accept?

GOV.UK’s reasonable excuses page lists situations that can count:

• your partner or another close relative died shortly before the deadline
• you had an unexpected stay in hospital
• you had a serious or life-threatening illness
• your computer or software failed while you were preparing your online return
• HMRC’s online services had problems
• a fire, flood or theft stopped you completing your return
• postal delays you could not have predicted
• delays related to a disability or mental illness
• you were unaware of or misunderstood your legal obligation
• you relied on someone else to send your return, and they did not

The last two are not automatic. They depend on your circumstances, as the sections below explain.

What does HMRC not accept?

GOV.UK gives four examples that are not reasonable excuses:

• your cheque bounced or payment failed because you did not have enough money
• you found the HMRC online system too difficult to use
• you did not get a reminder from HMRC
• you made a mistake on your tax return

When does lack of money count?

Only when the shortage was caused by events outside your control. Paragraph 23 of Schedule 55 to the Finance Act 2009 says an insufficiency of funds is not a reasonable excuse unless it is attributable to such events. A customer going bust without warning may qualify; overspending will not.

If you cannot pay, ask HMRC for a Time to Pay arrangement before the deadline. That is usually safer than relying on an excuse later.

Can you blame your accountant?

Sometimes. Paragraph 23 says reliance on another person is not an excuse unless you took reasonable care to avoid the failure.

HMRC’s guidance at CH160600 says reliance on an agent who failed to mention an obligation may be an excuse if the agent was asked to advise on all tax matters, was suitably qualified, and was given all the information you reasonably thought they needed. Chasing an agent who has gone quiet also helps show reasonable care.

How do tribunals decide?

Tribunals use the four-stage test from Perrin v HMRC, decided by the Upper Tribunal in 2018. HMRC sets it out at CH160900:

1. Identify the facts you rely on, including your beliefs and the acts of others.
2. Decide which facts are proven, on the balance of probabilities.
3. Decide whether those facts are an objectively reasonable excuse for you in your circumstances, and when the excuse ended.
4. Decide whether you put things right without unreasonable delay after that.

Perrin also rejected the idea that ignorance of the law can never be an excuse. HMRC’s guidance says your abilities, your circumstances and the nature of the obligation all count.

What must you do once the excuse ends?

You must file or pay as soon as you are able. HMRC sets no fixed time limit for “without unreasonable delay”; each case turns on its facts. A return filed weeks after you left hospital is easier to defend than one filed months later.

Interest is different. It is not a penalty, so a reasonable excuse does not remove it. Our guide to HMRC late payment interest explains how it is charged.

What to do now

1. Write down what happened, with dates, while you remember it.
2. Keep evidence: a hospital discharge letter, a death certificate, screenshots of HMRC error messages, or emails chasing your agent.
3. File the return or pay the tax first, so further penalties stop building.
4. Appeal online or on form SA370, usually within 30 days of the penalty notice. Our guide on how to appeal an HMRC penalty covers the steps.
5. Check what each penalty is for. Our guides to Self Assessment late filing penalties and failure to notify penalties explain the amounts.

Frequently asked questions

Is not having enough money a reasonable excuse?

Usually not. Under Schedule 55 it only counts if the shortage was caused by events outside your control.

Is not receiving a reminder from HMRC a reasonable excuse?

No. GOV.UK lists not getting a reminder as something that does not count.

Can I appeal if my accountant missed the deadline?

You can, but it only succeeds if you took reasonable care, for example by giving the agent all the information in good time and checking it was filed.

Does a reasonable excuse cancel interest?

No. Interest is not a penalty, so it is charged on late tax whatever the reason.

Does HMRC accept illness as a reasonable excuse?

A serious or life-threatening illness or an unexpected hospital stay can count. You need to show it stopped you filing or paying, and that you acted promptly once you recovered.