Morning, you hardworking mugs still waiting for that refund or trying
to get through to an adviser without losing the plot. While HMRC's own
staff rack up half a million sick days and Fujitsu finally gets the
boot, the taxman has found time to bombard over 300,000 ordinary workers and pensioners with what can only be described as "trivial" tax demands – tiny little bills for peanuts that probably cost more to send than they're worth.
Fresh FOI figures for the 2023-24 tax year reveal a record 1.32 million simple assessments – double the average of the previous six years. Of those, a whopping 317,000 were for £100 or less, and nearly half (647,000, or 49%) demanded £300 or less.
That's right: HMRC is spending your money printing, posting, and
chasing brown envelopes for amounts that wouldn't cover a decent night
out or a tank of petrol these days.
These "simple" assessments are meant to spare people the horror of
full self-assessment – fair enough if it's straightforward. But when
you're hitting pensioners who've never considered themselves "taxpayers"
before, just because a frozen personal allowance (£12,570, stuck since
2021 and now extended to 2031) plus a rising state pension tips them
over by a few quid? That's not simplification; that's bureaucratic
bullying.
The rise is pure fiscal drag – thresholds frozen
while everything else creeps up – pulling more folk into the net by
stealth. Experts like Ian Futcher from Quilter call it exactly that: a
steady creep that's now forcing HMRC to administer "nothing more than
£100" while piling shock and hassle on recipients who thought their tax
was sorted.
And the cherry on top? Former pensions minister Steve Webb (now at LCP) points out that in some cases, the cost of collecting these trivial sums probably exceeds what they raise.
Yet HMRC's boss has defended using debt collectors for as little as
£89. Brilliant priorities: hound grannies for a tenner while the phone
lines stay jammed and refunds take years.
Rachel Reeves promised in her Budget that from April 2027, pure state
pensioners won't get chased for "small amounts" via simple assessments.
How generous – after years of this nonsense. Meanwhile, savers, workers
with a bit of interest, or anyone else caught in the drag keep getting
the brown envelope treatment. And good luck querying it when the hold
music is longer than a tax year.
This is peak HMRC: obsessed with squeezing every last penny from the
little people, no matter how inefficient, while the big systemic
cock-ups (Horizon anyone?) drag on forever.
Tax does have to be taxing.
But wasting resources on trivia while ignoring real incompetence? That's just taking the mickey.
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