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Taxionary

Reasonable Excuse

[ˈriːznəbᵊl ɪksˈkjuːs]

Term

Summary:

A Reasonable Excuse is defined by HMRC as something that stops someone from meeting their tax obligations, even though they did everything they could.

More detail:

Reasonable Excuse is a term used by HMRC to describe something that stopped an individual from fulfilling their tax obligations that they took reasonable care to meet. It is needed in order to appeal a fine by HMRC.

Some Reasonable Excuses include a parter or close relative dying, unexpected stays in hospital, having a life-threatening illness etc.

HMRC will carefully review any appeals on a case by case basis and decide if you have an applicable Reasonable Excuse. If they accept your excuse, it may be possible for you to avoid or reduce fines and interest charges issued by HMRC.

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