This thread shows that HMRC is fining people on low incomes (who owe no tax) for not submitting a tax return.
Our new report: 40% of all HMRC late filing penalties charged to people who don't earn enough to pay tax.
— Dan Neidle (@DanNeidle) June 26, 2023
420,000 penalties charged to people on low incomes over the last four years. Article here: https://t.co/khNZVStrCO
Thread follows
The UK tax system is supposed to be progressive, meaning that those who earn more pay more tax. But a new report has revealed that 40% of all HMRC late filing penalties are charged to people who don't earn enough to pay tax.
This is a scandal. It means that people who are already struggling to make ends meet are being punished for not filing a tax return, even though they owe no extra tax.
There are a number of reasons why people might not be able to file their tax returns on time. They might be working multiple jobs, caring for a family, or simply struggling to keep track of their finances. Whatever the reason, it's clear that these people are not trying to evade tax.
But HMRC doesn't seem to care. They're happy to slap these people with hefty fines, even though they know that the fines will only make their financial situation worse.
This is not just unfair, it's also counterproductive. Charging people who don't earn enough to pay tax with late filing penalties is only going to drive them further into poverty.
It's time for HMRC to change their ways. They need to stop targeting the poor and focus on those who are actually trying to evade tax.
In the meantime, if you're one of the many people who have been hit with a late filing penalty, don't give up. You may be able to appeal the penalty if you can show that you had a reasonable excuse for not filing your return on time.
The tax system should be there to help people, not punish them.
These people are already struggling to make ends meet, and now they're being punished for not being able to file their tax returns on time. It's a disgrace.I urge everyone to contact their MP and demand that they take action to stop this injustice. Go back to how the law was before 2011, when late filing penalties would be cancelled if, once a tax return was filed, there was no tax to pay.
Tax does have to be taxing.
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Its punitive, with no access to the department at the best of times. No oversight.
ReplyDeleteThe argument they will use is: "We don't want to issue fines, we just want a completed return.. contact the department of there are and problems..."
If an appeal was sent in, it would be just added to the pile of post arrears. It might get a ten second glance in several months then swiftly dismissed.
Harra was at a PAC last week, they won't have him back again so soon.