HMRC error sees taxpayers charged over late-payment fines incorrectly

Tax officials were forced to apologise yesterday for two mistakes over late-payment fines, despite HM Revenue & Customs (HMRC) last weekend denying that taxpayers were being charged for failing to submit their self-assessment returns online, even though there is still almost two weeks before the deadline.

However, on Monday, the revenue admitted that some people have been wrongly charged and promised to cancel the penalty charges and apologised for the error.

The BBC reported that some 653 people who submitted their tax returns by the start of January were hit by the bogus late-payment penalty charges, and received letters from HMRC telling them they had missed the deadline and therefore had to pay a £100 penalty.

The BBC approached HMRC in relation to the errors, and the broadcaster reported that the revenue “went on the offensive” when discussing the matter, “insisting that no penalty notices had been sent to customers doing their self-assessment online”.

Speaking to the BBC, HMRC said: “Any assertion we have sent early penalty notices to customers doing their returns online is false.”

The revenue was forced to retract this statement on Monday after discovering there was a problem. More specifically, it said that hundreds of people who had made online returns for trusts that they manage, which were processed on 2 January, were wrongly issued a late-payment fine of £100.

A spokesperson for HMRC said: “Due to human error in processing some online trust returns a small number of trustees or agents have been inadvertently issued with late filing penalties.

“We apologise for any issues this may have caused our customers and are writing to them directly to let them know.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.

Air and the role of later-life lending
Content editor at MoneyAge, Dan McGrath, spoke to the chief executive officer at Air, Will Hale, about the later-life lending industry, the importance of tailored advice and how technology and obligations have shaped the sector.


Helping the credit challenged get mortgage ready
A rising number of borrowers are finding it harder to access mortgages due to being credit challenged - whether that’s from historic debts, a county court judgment, or having little to no credit history.

In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.

The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.