HM Revenue and Customs (HMRC) has imposed late penalties on 600,000 low earners, many of whom owe no tax. The automatic £100 fine for missing the January 31 deadline can escalate to over £1,600. Dan Neidle from Tax Policy Associates highlighted that "the Government should act, and stop the most vulnerable in society having their lives made harder by HMRC." A Freedom of Information request revealed that those with no tax liability are more likely to incur penalties. The Low Income Tax Reform Group (LITRG) warned of a "two-tier" system, where low earners face higher penalties. Antonia Stokes from LITRG urged HMRC to expedite the new penalty regime rollout to benefit all taxpayers. HMRC stated that 11.5m customers filed their 2023-24 tax return on time and encouraged those who believe they have been wrongly fined to appeal.
