HMRC raises earnings threshold for tax returns, risking penalties for high earners.
HM Revenue and Customs (HMRC) has increased the threshold for filing a tax return, potentially putting hundreds of thousands of higher earners at risk of penalties. The move, which aims to reduce the tax office's workload, raises the threshold from £100,000 to £150,000.
While this may seem positive for higher earners, experts warn that it could lead to inaccuracies in tax payments and penalties from HMRC. The change was made without consultation and has received little publicity.
HMRC has been striving to streamline the tax system and improve customer service, but these efforts have sometimes caused confusion and increased costs for taxpayers. The rollout of the Making Tax Digital programme, aimed at digitising the self-assessment process, has been delayed multiple times and is now projected to cost £1.3 billion, six times the original estimate.
The closure of the self-assessment helpline and the reduction of tax return filings through the raised threshold may result in more tax errors.
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