In an unprecedented move, HMRC cancelled a record 36,000 fines last year following widespread complaints about long helpline delays.Many taxpayers blamed these long waits for causing them to miss the Self Assessment deadline. 

The surge in cancelled penalties – up a huge 70% from the previous year – highlights growing concerns over the deteriorating quality of HMRC’s customer service.

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What is the penalty for missing the Self Assessment deadline?

Taxpayers who miss the January 31st Self Assessment deadline are typically hit with an automatic £100 fine. However, HMRC allows for appeals if taxpayers can demonstrate a valid reason for filing late. Among the accepted “reasonable excuses” are death of a close relative, severe illness, or significant service disruptions at HMRC itself.

The alarming rise in cancelled penalties appears to be directly linked to issues within HMRC’s helpline services. This huge spike in cancelled fines is clearly a warning about the potential consequences of HMRC’s faltering customer service. And follows comments made by MPs earlier in the year who described the tax office’s customer service as being at “an all-time-low”.

Is this sentiment backed up by stats?

HMRC’s own performance statistics for January 2024 reveal the scale of the challenge. The tax office received 171,000 online chat messages and 3.7million calls during the month of January alone. But more than 800,000 of these calls were either abandoned by the taxpayer or terminated by HMRC. 

Yes, you read that right, terminated by HMRC. The tax office has confirmed that if a taxpayer waits over 70 minutes to speak to someone then the call will be automatically disconnected. 

What does HMRC have to say about this?

Despite the record number of cancellations, an HMRC spokesperson defended their system. They stated “we’re committed to helping customers pay the tax they owe, on time. We charge penalties to encourage customers to meet their obligations, while acting as a sanction for those who don’t. Most automated penalties we issue each year are correct, with just one in every 140 requesting a review. When people have a reasonable excuse, we will cancel the penalty.”

As taxpayers continue to navigate the complexities of Self Assessment, the focus remains on HMRC to improve its customer service and ensure that taxpayers are not unfairly penalised due to systematic delays. 

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