In a shocking turn of events, HM Revenue & Customs (HMRC) recently withdrew a staggering 36,000 penalties for taxpayers who missed the self-assessment deadline. However, this seemingly positive move hides a deeper issue: HMRC's abysmal customer service.
Here's what you need to know:
1.Record Penalties Cancelled: Last year, HMRC cancelled a record number of fines for late tax filings. These fines are automatically imposed when taxpayers miss the January 31 self-assessment deadline, resulting in a £100 penalty.
2. Helpline Delays: The surge in cancelled fines is directly linked to helpline delays. Many taxpayers struggled to submit their returns on time due to prolonged wait times when seeking assistance from HMRC. In some cases, callers faced hour-long waits, and letters went unanswered.
3. Reasonable Excuses: While missing the deadline incurs an automatic fine, taxpayers can appeal if they have valid reasons. These "reasonable excuses" include the death of a close relative, serious illness, or issues with HMRC services.
4. Taxpayer Frustration: Accountants and tax experts have criticised HMRC's declining service quality. Some describe it as "no longer fit for purpose." The reduction in helpline support just before the self-assessment deadline left millions with limited phone assistance.
5. Unanswered Calls: During the busiest month for tax returns, HMRC received over 1.2 million calls in the eight weeks leading up to January 31. Unfortunately, more than 800,000 of these calls were abandoned by taxpayers or ended by HMRC.
6. Impact on Low-Income Individuals: Late filing penalties disproportionately affect low-income taxpayers, many of whom have no tax liability. The stress caused by fines, especially during challenging times, is concerning.
In summary, HMRC's customer service chaos has penalised Britons with automatic fines. Urgent improvements are needed to restore trust and ensure fair treatment for taxpayers.
Tax does have to be taxing.
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