HMRC, disability and late filing penalties

[WanderleyWagon]

Dear mumsnetters, a bit of a niche question!

I have recently learned that HMRC allows people who submit a tax return to apply for refund of late filing penalties where disability has been a factor in the late filing. I was wondering whether anybody has experience of putting in a claim to HMRC for this? I'm considering doing it but an accountant I have asked about it says he's never put in this kind of application, so I wonder is it very rare?

Call them they will tell you. Explain the situation and they will help you or citizens advice

Thank you, I should clarify that I rang HMRC and the only thing they were able to tell me was to apply retrospectively and ask my accountant about it. So I wondered whether it was odd that he wasn't familiar with this process?

I’m not following how you’d be eligible. If you have an accountant doing your taxes for you, surely they’d always be filed on time? Or is the accountant disabled?

You can write to then asking for the penalty to be waived for any reason you like wether they will accept it or not is another matter. I'm not sure what kind of disability would prevent you from completing your tax return in the 10 months you have to do it as presumably if the disability was a barrier you would get someone to help I.e your accountant.

There has to be a direct link between your disability and the lateness of the return, i.e. being in a coma after a car accident for a few months near the filing deadline would almost certainly be a "reasonable excuse" and cancelled fine. But having heart attack in April and being back to "normal" in June (i.e. working etc) when the deadline is 7 months away would almost certainly be rejected.

There is a general school of thought that if you're managing to continue running a business, then you're well enough to deal with the tax return on a timely basis, especially as there is a 10 month period of time to do, which allows plenty of time to get help (i.e. an accountant) or for periods of being unwell during those months, assuming you're well at other times.

Not quite so clear cut if you're not running a business, but have to do a SA return due to "passive" income, i.e. interest or dividends from investments or a long term buy to let.

It's certainly not just an "easy" excuse, as HMRC usually require evidence, i.e. a letter confirming dates/illness etc from the GP, consultant or hospital.

Mental health issues usually gain more sympathy from HMRC, but again, they still need evidence, they won't just cancel a penalty on your say so.

Thanks to everyone for your input. This is about ongoing, increasingly severe mental health issues. All comments noted!

Maybe you could have mentioned mental health rather than disability in the title and op

Ah! Well, as it happens I have both mental health problems and neurodiverse conditions which come under the heading of disability. But thank you - that's indeed a good point for ongoing discussion because they are different things.