MSE News: 'I couldn't file my tax return because my wife was seeing aliens'

Former_MSE_Megan_F

Aliens, rabbits and spilt coffee were among the most unbelievable excuses for late tax returns and expenses given to HMRC...

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''I couldn't file my tax return because my wife was seeing aliens'''

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One-Eye

"I couldn’t file my return on time as my wife has been seeing aliens and won’t let me in the house."

I thought we were all in favour of financial institutions having more consideration for those suffering mental health problems, but no - let's have a good laugh at them instead.

"I couldn’t file my return on time as I suffered a breakdown and was admitted to the mental health ward at my local hospital" :rotfl:

PS. If the aliens were paying the family I bet the taxman would want his share.

jamesd

The tax payer whose wife was seeing aliens should consider appealing. Mental health issues of both the tax payer and close family members are legitimate reasons for delay, if genuine. On appeal people have had many years worth of penalties removed. For example, Hindocha v HMR&C [2017] UKFTT 0373 (TC):

"the Revenue accepted that serious mental illness could be enough to excuse lateness but it went on to argue that where the illness was an ongoing condition the taxpayer should make arrangements for sending in their tax return on time. The Tribunal decided that the taxpayer had suffered from a serious mental illness which had been ongoing for four years in the form of depression, anxiety and panic attacks. And it went on to decide that it had affected the taxpayer in such a way that he had been unable to arrange for somebody else to get his returns in for him. He had found it impossible to get his menial day to day activities sorted, let alone his finances and taxes. He won his appeal and penalties totalling nearly £1,500 were quashed."

HMRC can't reject a return and charge penalties just because it's incomplete, see Pidgeon v HM Revenue & Customs [2017] UKFTT 0438 (TC). Get in any partial return before the deadline and you're safe. But do try to help HMRC by saying which numbers are estimated.

If you can't pay for reasons out of your control HMRC can't levy penalties, see Pearson v HMRC [2017] UKFTT 0780 (TC): "Was the payment late due to an insufficiency of funds and, if so, did that insufficiency arise by reason of events which were outside his control? If the answer was 'yes' to each then Mr Pearson would have a reasonable excuse".

HMRC can't use a computer to decide to fine you for being late, a human has to decide, per Khan Properties Ltd v Commissioners for HMR&C [2017] UKFTT 0830 (TC). So give your excuse and make HMRC work for the penalty money.

Breaking Law seems like an interesting resource.