Question:
I run a construction company. Due to ill health, staff shortages and cashflow pressures, I missed the deadline for filing my tax return. I am concerned about penalties and am wondering if HMRC will take my circumstances into account. Can the late filing penalties be appealed?
Arthur replies:
In principle, HMRC should take your circumstances into account, and it is worthwhile appealing. Make sure you have good evidence to support your claim. Obviously, you should now 'get your act together' and submit your tax return as soon as possible, even if you can't pay the tax owed straight away. At least you should pay as much tax as you can. If necessary, negotiate 'Time to Pay' (see www.gov.uk/difficulties-paying-hmrc ).
