HMRC Notifies Wealthy Taxpayers to Submit Self Assessment Tax Returns

HM Revenue and Customs (HMRC) has identified some wealthy taxpayers who are yet to submit their Income Tax Self Assessment (ITSA) for the Tax Years 2020/21 and 2021/22.

Wealthy Taxpayers with Late Returns

There are a number of wealthy taxpayers who have submitted their returns for tax years 2020/21 and 2022/23 but not for 2021/22. Additionally, some taxpayers have submitted their returns for 2019/20 and 2022/23 but not for 2020/21 and 2021/22.

HMRC has notified those wealthy taxpayers to submit their returns by 12 July 2024. The tax authority may charge penalties for late returns and interest on tax paid late. If the taxpayers are unable to submit their Self Assessment Tax Returns, HMRC will send a determination. The determination will be an estimate of how much tax is due based on the information available.

What Are Reasonable Excuses for Late Payment?

If you have a reasonable excuse for late submission of tax returns, you can appeal against the penalties. The excuse will be given to you according to your case. If the excuse is granted, you do not have to pay the penalty sum.

Here are all the cases considered a reasonable excuse by HMRC:

• You suffered a life-threatening illness
• Your partner or close relative died before the payment deadline
• You had an unexpected stay in the hospital
• Your computer or software malfunctioned just before or while preparing your online return
• You experienced service issues with HM Revenue and Customs (HMRC) online services
• Fire, flood or theft prevented you from completing your tax return
• Postal delays you could not have prevented
• You have a disability or mental illness
• You misunderstood or were unaware of your legal obligation
• You relied on someone else to submit your tax return

Furthermore, here are some cases considered unreasonable:

• You did not get a reminder from HMRC
• Your cheque bounced or payment failed due to insufficient funds
• You made a mistake on your tax return
• You found the HMRC online tool difficult to use

So, if you have a reasonable excuse, making an appeal to HMRC might be the right decision, as a major chunk of your penalty sum will be deducted.

Conclusion

HMRC has identified a number of wealthy taxpayers who have not submitted their Self Assessment Tax Returns for the Tax Years 2020/21 and 2021/22. So, the tax authority has notified the taxpayers to submit their tax returns by 12 July 2024.

If they fail to do so, they will receive a determination from HMRC. However, if you have a reasonable excuse to submit your tax returns late, you can appeal against the penalty sum.