Tens of thousands of people who earn too little to pay tax are still receiving fines for failing to file a tax return on time, according to data from the Tax Policy Associates (TPA) think-tank. In 2021/22, over 83,000 individuals earning below £12,570 received £100 penalties, with only 17,000 successfully appealing. The situation worsens with the £300 fines for filing a year late, where half of the 61,000 fines were issued to those earning too little to pay tax. Dan Neidle, founder of TPA, said: "It's shameful tens of thousands of people on very low incomes... have their lives made more difficult by HMRC penalties." Despite a new warning system being introduced, campaigners argue that the current penalty regime remains unfair. An HMRC spokesperson said: "The Government recognises that taxpayers who occasionally miss the filing deadline should not face financial penalties and reform of the system is under way."
