The FT reports that the Low Incomes Tax Refrom Group (LITRG) has described HMRC's automatic £100 fine for late tax returns as “nothing short of oppressive”, and has urged HMRC to overhaul the penalties imposed on nearly 1m people a year.
LITRG correctly notes that taxpayers, who cannot afford professional advisers, face being fined had missed the deadline because of
ignorance, ill health or bereavement.
Additionally, around 200,000 people last year missed the deadline because they failed to press the “submit” button when they filed online.
HMRC announced plans in February to consider “whether we could better differentiate between deliberate and persistent non-compliers and those who might make an occasional error for whom alternative interventions are more appropriate”.
There is a world of difference between a taxpayer who misses a deadline by a day or two and someone who has made no attempt to comply at all.
Automatic fines should not be used as an easy means of generating extra revenue.
Tax does have to be taxing.
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The problem is HMRC gives tax payers too long to it, they get their notice to file in April and instead of just doing it, they procrastinate for 9 months, so not allowing themselves time to deal with any errors or problems. Some people need to wait until May for their P60 details, but there is no reason for anyone to be filing returns the January following the end of the tax year! HMRC doesn't want to fine them, they just want them to do their returns and pay the bill, sorry no sympathy here.
ReplyDeleteNot everyone is employed, some are sole traders, some are partners, some are directors. It is not always or simply "procrastination".
DeletePretty rich coming from a Department that struggles to answer the phones and is curently sitting on a million unanswered letters. Maybe it is time they were fined a £100 for failing to respond to letters within 30 days. Of course, I forgot that they dont consider they have any obligations to provide a service the taxpayers who actually pay their wages
ReplyDeleteThe staff at HMRC are taxpayers too... most are appalled by the 9 week post backlog & the length of the call waiting queues.... But given that the general population of the UK haven't given a shit about the cuts imposed on HMRC despite being forewarned that the current situation would arise... I guess they are reaping what they sowed!
DeleteRubbish department working for a rubbish government in a rubbish country
DeleteThe UK has potential failed state written all over it
No wonder the Scots want out
There are some very good staff in there but not enough of them. Too many staff have left and not replaced leaving the place in a sorry state. Don't worry though, technology will come and save the day.......
DeleteDon't blame the staff...blame senior management and their failed policies !!
Deletewhen will you admit that HMRC is a money making company NOT a service provider!! wake up and smell the shit they peddle
ReplyDelete