HMRC fines exceeding tax for low-income earners

More than 180,000 low-income earners with no tax to pay in the 2020-21 tax year were issued fines by HMRC for not filing tax returns – after appeal 126,000 fines remained for this cohort.

by | 27 Jun, 2023

calculator and tax papers on a table

“Until 2011, a late-filing penalty would be cancelled if, once a tax return was filed, there was no tax to pay,” The Guardian reports.

Tax Policy Associates founder Dan Neidle told The Guardian: “We believe the law and HMRC practice should change. Nobody filing late should be required to pay a penalty that exceeds the tax they owe.”

Read the story, including comment from HMRC.

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