Culture

HMRC has been heavily relying on automation and phone lines

January, 08, 2025-03:40

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HMRC has been heavily relying on automation and phone lines:

It sounds like you've taken all the necessary steps to try and resolve the situation with HMRC, but you're understandably concerned about the risk of a fine for not filing a tax return. Let's break this down:

1. HMRC's Response Time: You've done the right thing by following their instructions, including sending a registered letter and waiting for a written response. HMRC's delay in responding is a frustrating reality that many taxpayers face, especially given the reductions in their customer service workforce and reliance on automated systems.

2. The £100 Fine: If you haven't been notified that you're exempt from filing a tax return and you miss the deadline, HMRC may impose a £100 fine. However, you have a reasonable argument that you've been proactive in attempting to communicate with them and resolve the issue, especially considering the specific guidance from HMRC advising people not to call.

3. What You Can Do:
- Document Everything: It sounds like you've kept records of your efforts to communicate with HMRC, which is great. Keep those records, as they could be important if you need to challenge a fine later.
- File Your Return (If Possible): If you're still unsure about whether or not you need to file a return and it's nearing the deadline, it's a good idea to err on the side of caution and file it, even if you think you shouldn't have to. This could prevent a fine while you continue to pursue your exemption request.
- Appealing a Fine: If you do receive a fine, you can appeal it, especially if you can prove you made a reasonable attempt to contact HMRC and follow their guidance. While HMRC might not automatically waive the fine, having your communication history and a clear explanation of your actions could help in your favor.

4. Challenging the Fine: If you get fined and need to appeal, you should not need an accountant right away. The process can often be managed by explaining your situation clearly to HMRC and submitting any documentation that shows your efforts to resolve the matter. If the case escalates, it could be helpful to involve a professional, but the initial steps can often be done without one.

5. Likelihood of Success: Given that HMRC has been heavily relying on automation and phone lines have been difficult to access, it's likely that an appeal based on your documentation and reasonable attempts to contact them would have a good chance of success. It may take time, but you shouldn't automatically assume that you'll be penalized just because the system failed to respond in time.