The hack which means you may not have to file a tax return at all – and how to beat the HMRC customer service meltdown – has been revealed.
This is Money reports millions who are trapped in the customer service logjam are at risk of being fined £100 by the Labour Party government’s taxman if they miss the deadline. People are waiting six weeks – instead of the usual 15 days – to get vital log in details that allow them to file their taxes.
And on the phone, people are waiting up to 58 minutes for their calls to be answered. Robert Salter, a director at tax adviser Blick Rothenberg, says: “As many as a third of HMRC staff are on the national living wage, with many not well-trained staff being employed to handle calls.
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“It is no great surprise that if staff are unable to answer specific tax queries you might suddenly lose phone connection.”
Andy Gibbs, chartered tax adviser at TaxAssist Accountants, says:”‘It is now probably too late if you are asking for a UTR for it to arrive in time.
“Unfortunately, this means many will be forced to accept the £100 penalty. But this is no time to throw up your arms in surrender. You should still plough ahead to avoid any further penalties.”
Eddie Grant of the Personal Finance Society says: “Submitting a tax return by the deadline even if you need to revise it later is possible.”
Gibbs says: “At the start of January some six million people still had not filed their tax returns. This means there is going to be a rush to get HMRC support that is only going to get worse as the month goes on.”
Salter says: “Many self-employed people are struggling with bills, but leaving it to the last moment could be a mistake. It just takes a glitch on the internet to mean you miss the deadline and get stung with a £100 penalty.”
An HMRC spokesperson says: “Average phone call wait time has gone down by 30 per cent in the past year and achieving further improvement is a priority.
“Our staff spend the majority of time working from offices but, if working remotely, are held to the same standards. There is a wide range of online help and support on gov.uk.”
Reasons you don’t need to file a tax return include those who pay automatically via PAYE, those who have earned less than £1,000 in the tax year ending 5 April 2025 from any side work or rent, and anyone renting out a fully furnished room in their home if it is less than £7,500 a year.
Other reasons are £500 less in dividens, £1,000 in interest on their savings if you’re a basic rate taxpayer, and state pensioners above £12,570, which are usually taken automatically via PAYE from your pension provider.
