logo
Taxpayers told they may be free from HMRC fees and could be due a refund

Taxpayers told they may be free from HMRC fees and could be due a refund

Daily Mirror3 days ago
A total of 46,266 penalties were withdrawn in the tax year to April 2024 after being issued to people who either owed no tax or missed deadlines due to reasons beyond their control
Tens of thousands of taxpayers may have been wrongly fined by HMRC, and many Brits could be in line for refunds after a record number of penalties were cancelled last year. A significant 46,266 fines were withdrawn over the course of just 12 months, having been issued to individuals who either didn't owe any tax or missed deadlines due to circumstances beyond their control.

These figures, published in HMRC's most recent statements, show a 29 per cent surge in annulled penalties compared to the previous year. Now, experts are calling on people to contest fines they reckon are unjust. Taxpayers can be served an automatic £100 fine for failing to meet the self-assessment deadline, while businesses can be penalised for tardy VAT returns.


However, a wave of successful appeals has been seen following challenges made through HMRC's online system, which underwent an overhaul in early 2023 to simplify the appeal process, reports the Express.
Yet Andrew Park, a tax partner at accountancy firm Price Bailey, warns that the issue is much more pervasive, with numerous fines being set off by banking delays, administrative errors within HMRC, and chronic customer service shortcomings.
"Late filing penalties are disproportionately levied on people on low incomes, many of whom have no tax to pay," he disclosed to the Telegraph.

It has also come to light that over the past five years, 600,000 penalties have been meted out to individuals earning below the £12,570 personal allowance, indicating they had zero tax liability to begin with. After obtaining this data through a Freedom of Information request, the thinktank Tax Policy Associates has called for the abolition of such penalties.
HMRC's helpline has also been criticised. In the first half of 2024-25, the tax authority left 35% of calls unanswered, falling short of its 85% target. Despite drafting in more call handlers to improve the situation, scores of taxpayers are still struggling to get assistance prior to the filing deadline.
HMRC issued a staggering nine million penalties on taxpayers last year, a jump from just over eight million the previous year.

Park says millions could be paying penalties needlessly: "When two-thirds of appealed penalties are overturned, yet only a small fraction of the nine million issued are challenged, it suggests a significant number of taxpayers may be paying penalties they could successfully contest."
A revised points-based penalty system introduced under the Making Tax Digital initiative is set to give self-employed individuals using digital system relief from the automatic £100 fine. Instead, self-employed taxpayers will accrue penalty points with a maximum £200 cap per return.

Those not covered by Making Tax Digital – including numerous low-income earners – remain subject to the more unforgiving legacy system.
An HMRC spokesperson defended their position: "Our penalty reforms enable customers to appeal easily and quickly online against both penalties and penalty points. Our new points-based system means only those who persistently miss deadlines will incur a financial penalty."
Taxpayers who reckon they've been unjustly fined have a 30-day window from the date on the penalty notice to lodge an appeal. Those who no longer need to file a return must inform HMRC prior to January 31 to dodge a fine.
What to do if you've been fined
Check if you actually owed tax – if not, your fine may be challengeable.
Appeal online via your HMRC account within 30 days.
If you're self-employed and not in Making Tax Digital, be aware you're still under the old regime.
Contact HMRC if you believe you were wrongly issued a return request.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

New study reveals the cities where Brits have most disposable income in 2025
New study reveals the cities where Brits have most disposable income in 2025

Metro

time2 hours ago

  • Metro

New study reveals the cities where Brits have most disposable income in 2025

Link is copied Comments If you're coupled up in the UK, some cities will be kinder to you financially. That's according to new research from specialist mortgage lender Pepper Money, anyway. The company recently conducted a study to find where British couples have the least and most disposable income, and you'll be surprised by the results. While a northern gem came out on top, other cities - that are renowned for being pricey - also fared particularly well (Picture: Getty Images) Pepper Money explained that, while wages across the UK are rising, many Brits are finding they have less money left at the end of the month in certain areas. This means the average Brit's disposable income is shrinking, despite a national living wage increase and higher median salaries. The research - based on couples who own a home together - looked at essential outgoings such as mortgages, utility bills, and car finance, plus average wages. With all of these paid off, they then did the math to find out how much each couple was left with at the end of the month. Curious about how your home city fares in terms of disposable income? Here are the top 10 cities: (Picture: Getty Images) Average monthly salary: £2,304.13 Total bills: £1,418 Average disposable income available: £886.51 At number 10 is Manchester, which has an affordable cost of living, especially when compared to other large cities like London. Student accommodation site uhomes ranked Manchester the 13th cheapest place to live in the UK. In 2024, the Office for National Statistics (ONS) reported that the average house price in the northern city is £257,000. So, for couples with more money to burn at the end of the month, Manchester is a great place to spend it (Picture: Getty Images) Average monthly salary: £2,334.59 Total bills: £1,400 Average disposable income available: £934.48 Next up is Leeds, a major city in West Yorkshire. While it's not the cheapest place to live, it is considered generally more affordable than other major cities. In May 2025, the ONS revealed that the average house price here is £241,000. From exploring the historic Kirkgate Market to grabbing cocktails at one of the many indie bars, there's a lot to spend your extra cash on in Leeds (Picture: Getty Images) Average monthly salary: £2,352.12 Total bills: £1,381 Average disposable income available: £971.33 The third northern (and second Yorkshire) city to make the list is Sheffield. The cost of living is significantly lower than Manchester's - according to the Sheffield College, it's 10% lower than the national average, and 25% lower than London. House prices here average at £221,000 as of January 2025 (Picture: Getty Images) Average monthly salary: £2,226.75 Total bills: £1,248 Average disposable income available: £978.80 Liverpool has so much going for it. From the iconic Docks to delving into the music scene at the Cavern Club, there's never a dull moment in the city. And, there's always an activity to spend your cash on. Expatistan estimates the cost of living in Liverpool is 47% cheaper than London, while house prices average around £180,000. This is way cheaper than the previous fellow northern cities on this list (Picture: Getty Images) Average monthly salary: £2,257.82 Total bills: £1,241 Average disposable income available: £1,016.72 Further down south to the Midlands now, and Nottingham has come in at a respectable sixth place. According to whatuni, the cost of living in Nottingham is quite close to the national average, but is around 18% cheaper than London. But, Rightmove prices houses a little higher, at £265,448 on average. With couples having over a grand to spend per month, it's worth checking out Nottingham Castle, the City of Caves, and the Old Market Square (Picture: Getty Images) Average monthly salary: £2,120.69 Total bills: £1,100 Average disposable income available: £1,020.95 In 2024, the cost of living in Belfast was around 37% lower than in London. As of the first quarter of 2024, the average house price in Northern Ireland's capital was approximately £216,098. There's so much to do in Belfast that suits every kind of person, from taking part in a seisiún (traditional Irish music session) in a local pub to diving into the city's history at Belfast City Hall. Or, experiencing the vibrant atmosphere of St. George's Market (Picture: Getty Images) Average monthly salary: £2,439.84 Total bills: £1,300 Average disposable income available: £1,140.18 Glasgow is considered to be more affordable than Edinburgh, Scotland's capital, and the UK's capital in general. Living in Glasgow is, on average, 20% cheaper than in London and 10% cheaper than the rest of the UK. House prices are also way more affordable, coming in at £188,000 as per the ONS. And, with almost £1,200 to spare after monthly outgoings, couples can enjoy the best of the Scottish city. The Kelvingrove Art Gallery and Museum, the Riverside Museum, and strolling through the Glasgow Botanic Gardens are highlights. Glasgow also has a thriving nightlife ready and waiting for you to splash the cash, too (Picture: Getty Images) Average monthly salary: £2,760.42 Total bills: £1,581 Average disposable income available: £1,179.25 Considering Edinburgh is renowned for being an incredibly expensive city, it's quite shocking to see it offering one of the highest disposable incomes in the UK. In 2023, it was actually named the third most expensive city to live in in the UK. Still, for home-owning couples (the average price sits at around £295,000), Edinburgh is a vibrant city that can provide a high standard of living. From the annual Fringe festival, exploring Edinburgh Castle to taking part in a Scotch Whisky Experience, there's never a dull moment in the Scottish capital (Picture: Getty Images) Average monthly salary: £2,671.22 Total bills: £1,340 Average disposable income available: £1,331.11 At number two is Coventry, where couples have over £1,300 to fritter away each month. In contrast to Edinburgh, the cost of living is a lot lower here. So are house prices, averaging around £224,000. Though Coventry isn't considered a 'day tripping' kind of town, it has a lot to offer residents. This includes Coventry Cathedral and FarGo Village, the city's creative quarter (Picture: Getty Images) Average monthly salary: £2,775.69 Total bills: £1,304 Average disposable income available: £1,471.27 Last but not least, it's Newcastle. With almost £1,500 of disposable income for couples, the city can be enjoyed without having to stress too much about money. Not only this, but Newcastle is known for being quite an affordable place to live: it's 23.0% less expensive than London, and has an average house price of £237,760. So, what can you spend your hard-earned cash on? Why not catch a show at the Theatre Royal, immerse yourself in live music at the Glasshouse International Centre for Music, or take a guided tour of Victoria Tunnel, a preserved 19th-century coal waggonway and wartime air-raid shelter. Even walking through the cobbled streets of Newcastle, and hopping into one of the many restaurants and bars, is a lovely way to while away your spare time (Picture: Getty Images)

What invalidates home insurance? This habit puts you at risk
What invalidates home insurance? This habit puts you at risk

Rhyl Journal

time3 hours ago

  • Rhyl Journal

What invalidates home insurance? This habit puts you at risk

Making sure your home is protected is key to looking after your property and family comforts. However, experts have claimed that one habit could be putting your home insurance at risk. It's also a mistake that is more likely to happen during the summer months and shockingly one in 10 Brits say they do it. 🚨Looking for a place to rent? ⚠️ Fraudsters create fake listings on legitimate rental platforms to lure victims into rental scams ✅ You, or someone you trust, should always view the property before you make payment Find out more: Leaving a key under the doormat or plant pot while away on holiday is one of the most common ways homeowners invalidate their home insurance. Heath Alexander-Bew, director at insurance provider Alan Boswell Group, explained: 'In many cases, in the event of a burglary or stolen possessions, there will need to be signs of 'forced entry' to make a valid, successful claim. 'By leaving a key to the property under a doormat or plant pot, homeowners make it easy for burglars to enter, potentially resulting in a declined insurance claim.' Instead, it is recommended to leave a key with a trusted friend or family member. Mr Alexander-Bew continued: 'Alternatively, invest in security measures such as a wall-mounted key safe which can only be accessed by someone who has the code. 'Always ensure your home is completely locked and secured before going on holiday, and do not leave any spare keys around.' Further advice suggests to never reveal on social media that your home will be empty. Home insurance protects your home in case something unexpected happens. HSBC advises: 'Without cover, you risk having to pay for replacements or repairs if something happens to your home or belongings. This could be if they're damaged in a fire or a flood or if your things are stolen. Recommended Reading: Homeowners could be fined £20k for cutting garden trees Can you paint over algae on a fence? How to remove it Dog owners warned of fatal plants that could endanger pets 'With household insurance in place, if anything happens to your property or possessions that are covered by your policy, you'll be protected financially. 'If you're renting, you don't need to worry about buildings insurance, as this is your landlord's responsibility. 'But you should consider contents insurance to help cover the costs of replacing possessions if something happens to them.'

What invalidates home insurance? This habit puts you at risk
What invalidates home insurance? This habit puts you at risk

North Wales Chronicle

time3 hours ago

  • North Wales Chronicle

What invalidates home insurance? This habit puts you at risk

Making sure your home is protected is key to looking after your property and family comforts. However, experts have claimed that one habit could be putting your home insurance at risk. It's also a mistake that is more likely to happen during the summer months and shockingly one in 10 Brits say they do it. 🚨Looking for a place to rent? ⚠️ Fraudsters create fake listings on legitimate rental platforms to lure victims into rental scams ✅ You, or someone you trust, should always view the property before you make payment Find out more: Leaving a key under the doormat or plant pot while away on holiday is one of the most common ways homeowners invalidate their home insurance. Heath Alexander-Bew, director at insurance provider Alan Boswell Group, explained: 'In many cases, in the event of a burglary or stolen possessions, there will need to be signs of 'forced entry' to make a valid, successful claim. 'By leaving a key to the property under a doormat or plant pot, homeowners make it easy for burglars to enter, potentially resulting in a declined insurance claim.' Instead, it is recommended to leave a key with a trusted friend or family member. Mr Alexander-Bew continued: 'Alternatively, invest in security measures such as a wall-mounted key safe which can only be accessed by someone who has the code. 'Always ensure your home is completely locked and secured before going on holiday, and do not leave any spare keys around.' Further advice suggests to never reveal on social media that your home will be empty. Home insurance protects your home in case something unexpected happens. HSBC advises: 'Without cover, you risk having to pay for replacements or repairs if something happens to your home or belongings. This could be if they're damaged in a fire or a flood or if your things are stolen. Recommended Reading: Homeowners could be fined £20k for cutting garden trees Can you paint over algae on a fence? How to remove it Dog owners warned of fatal plants that could endanger pets 'With household insurance in place, if anything happens to your property or possessions that are covered by your policy, you'll be protected financially. 'If you're renting, you don't need to worry about buildings insurance, as this is your landlord's responsibility. 'But you should consider contents insurance to help cover the costs of replacing possessions if something happens to them.'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store