Closed petition Review interest and penalties imposed by HMRC for underpayment of tax

Closed on 24 August 2021

Review the current system of penalties and interest for underpayment of taxes so that it is not counter-productive to the taxpayer. Fines/interest should not be imposed as a matter of course. There should be flexibility to suspend interest and reduce penalties depending on circumstances.

The current system of penalties/interest is grossly unfair. Underpayment of taxes often occurs because someone is in financial difficulties. When interest and penalties are added relentlessly to the debt, with no regard to circumstances, it makes the burden for someone who is already in financial trouble significantly worse, increasing worry and stress rather than trying to help that person get back in a position where they can work and make a positive contribution to society.