Categories
Small Business Lifestyle

Demand for reform after more than 80,000 low earners hit by HMRC penalties | Personal Finance | Finance [Video]

HMRC provide advice on self-employed tax returns

Tens of thousands of people who earn too little to pay tax are being hit with hundreds of pounds in fines for failing to file a tax return on time.

Currently, individuals earning less than £12,570 a year do not pay income tax. However, those who are self-employed must complete a self-assessment tax return each year, even if they don’t reach these earning thresholds.

Failure to file this before the paper deadline on October 31 or the online deadline on January 31 results in an automatic fine.

More than 83,000 people earning less than the threshold were issued with a £100 penalty by the tax authorities in 2021-22. Only 17,000 of those fines were later cancelled on appeal.

Those with low incomes fare even worse when it comes to the £300 fines handed out for filing a year late. Half of all the 61,000 fines were to people who earn …

Watch/Read More