Grounds of reasonable excuse for HMRC appeals

Examples of what you might agree as grounds of reasonable excuse

The taxpayer did not receive the return

Where you are satisfied that the taxpayer did not receive the return, for example, it is returned undelivered.

The completed return was lost or delayed in the post

The taxpayer is expected to allow sufficient time for the return to reach you. However if the return was posted in good time and an unforeseen event occurred which disrupted the normal post service and led to loss or delay of the return, for example fire or flood at the Post Office where the return was handled or prolonged industrial action by the Post Office, would be considered reasonable excuse.

Loss of tax records

You should normally agree as a reasonable excuse loss of records through fire, flood or theft, although you should be satisfied that the information for completion of the return could not be replaced in time for the taxpayer to complete the return by the due date.

Serious illness

The illness must be so serious that it prevented the taxpayer from controlling his business affairs immediately before the deadline and from that date to the time the completed return is received. Coma, heart attack, stroke or any other serious or life threatening illness constitutes a reasonable excuse.

Where the illness involves a lengthy stay in hospital or convalescence the taxpayer should normally have made arrangements for completing and sending in the tax return on time. There may however be circumstances where this was not possible.

The serious illness of a close relative or domestic partner should only be accepted if the situation took up a great deal of the taxpayer’s time and attention during the period from the filing date to the date the return is received.

Bereavement

The death of a close relative or domestic partner shortly before the filing date should be treated as a reasonable excuse, as long as steps had already been taken to complete the return on time.

An extended period of exceptionally severe weather very close to the filing deadline

For example, this may prevent a taxpayer who has taken appropriate steps to ensure their return is completed and submitted by the deadline, from giving written authority to their agent to finalise and submit the return on their behalf, so the taxpayer no longer has the time, or opportunity, to make an alternative arrangement.

Another example would be where the exceptional conditions prevented an agent’s staff from attending their office to complete and submit the return as authorised by the taxpayer.

You may agree exceptional weather as grounds of reasonable excuse where the circumstances broadly match those described above.

source: SAM10090 - Appeals, postponements and reviews: appeals: grounds of reasonable excuse

http://www.hmrc.gov.uk/manuals/sammanual/sam10090.htm