Posts tagged "Penalties"
a bill from HMRC sent to Andrea for almost £9,594.79. Andrea never owed HMRC any tax.
Jul 6, 2025 Analysis

600,000 HMRC penalties issued to low-income earners who owe no tax

In the past five years, 600,000 people who owe no tax have been charged HMRC late-filing penalties. The penalties start at £100, but can snowball into four- and five-figure debts: one woman with severe mental-health difficulties was pursued for £10,000; another was driven into bankruptcy. A system that was intended to encourage timely tax filing […]
The Observer Tax Michael Savage and Raphael Boyd Sat 26 Ocl 2024 16.00 BST Share Thousands are fined by HMRC even though they don't owe any UK tax Campaigners call for reform after more than 83,000 low earners are hit by HMRC penalties IM Re ve; Custo mate HM Revenue & Customs i There are concerns about the extent ta which people who are vulnerable or facing financial hardship are being issued with the penalties for failing to submit a self-assessment tax form on time. Photocraoh: Ascannin/Alamy
Oct 29, 2024 Policy

How to reform HMRC penalties for people on low incomes

Between 2018 and 2022, almost 660,000 people on low incomes received a penalty for not filing a tax return on time. Very few of them earned enough to pay any tax. But, by failing to submit a tax return, they were fined at least £100, and often thousands of pounds. For most of those affected, the penalty represents more than half their weekly income. This report illustrates the scale of the problem. 45% of all HMRC late filing penalties were charged to people on low incomes, most of whom actually owed no tax. We believe the law and HMRC practice should change, and we make three key recommendations.
Number of Taxpayers 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Total number of late filing penalties on taxpayers in each income decile - 2018/19 to 2021/22 Personal allowance - incomes Under this are not taxed 1st 2nd 3rd ath Sth eth 7h ath ‘oth Income Decile Toth IE Total Penalty appealed IB Total Penalty charged
Jun 26, 2023 Investigations

Penalising the poor: 420,000 HMRC penalties charged to people who earned too little to pay tax. That’s 40% of all HMRC late filing penalties.

Between 2018 and 2022, almost 660,000 people on low incomes received a penalty for not filing a tax return on time. Very few of them earned enough to pay any tax. But, by failing to submit a tax return, they were fined at least £100, and often thousands of pounds. For most of those affected, the penalty represents more than half their weekly income. This report illustrates the scale of the problem. 45% of all HMRC late filing penalties were charged to people on low incomes, most of whom actually owed no tax. We believe the law and HMRC practice should change, and we make three key recommendations.
Self Assessment: Late tax return Notice of penalty assessment HM Revenue & Customs Tax Reference F DM Nedle Date 08 January 2019 | issued by HM Revenue & Customs Phone +44 115 974 3009 Fatty Your tax return for the year ended 5 April 2018 was not sent in on time. Because of this a penalty of £100 is payable.
Mar 9, 2023 Investigations

Penalising the poor: HMRC charged 400,000 with penalties when they had no tax to pay

Between 2018 and 2020, almost 400,000 people earning less than £13,000 received a penalty for not filing a tax return on time. Very few of them had any tax to pay, given that the tax-free personal allowance was around £12,000. But, by failing to submit a tax return, they were fined at least £100, and often thousands of pounds. For most of those affected, the penalty represents more than half their weekly income.

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