HMRC gets 'formidable' powers and may 'seize possessions'

James Rodger
·2-min read

A tax warning has been issued to pensioners as HMRC lines up "formidable" powers and may "seize possessions". A tax expert is warning that HMRC is not to be messed with, as it chases pensioners and OAPs for tax in a fresh crackdown.

Anyone who misses the annual tax deadline on January 31 faces an automatic £100 late payment penalt. This escalates to £10 a day after three months. Then after six months it increases to five percent of the tax owed or £300, whichever is higher.

This is repeated if the tax still hasn't been paid after 12 months. Stephen Lowe, director at the retirement specialist Just Group, said: “HMRC has formidable powers to recover tax owed, levy penalties for unpaid tax, and charge late payment on interest.”

READ MORE UK households getting four Cost of Living payments worth £300 in June and July

And Mr Lowe went on and warned: “In extreme cases, HMRC can seize possessions, take money from bank accounts, make you bankrupt, or take court action for tax evasion that could result in imprisonment.” He added: “HMRC is an organisation to be respected. Taxpayers can’t expect any special treatment just because they are pensioners.”

“Where too much tax has been taken, refunds can be claimed, which makes it important to check the figures including any P60 forms issued by pension providers and employers," he continued. “Most important, if you find yourself in tax trouble, alert HMRC.”

“Those on low incomes can get help from charities such as TaxAid and Tax Help for Older People," he continued. “Many will fall under the simple assessment system where HMRC sends a calculation for tax owed each year (PA302) which is also available to view online.”

The deadline for sending most online 2022/23 self assessment tax returns to HMRC, and for paying the related tax, is 31 January 2024. If this deadline applies to you, make sure you filed your 2022/23 tax return online and pay any tax you owe by 31 January 2024 to avoid penalties and interest.

  • Up next
  • Up next
  • Up next
  • Up next

Latest stories

  • DWP to check claimants' bank accounts for 'two things' under new powers

    The DWP will be monitoring bank accounts of those on benefits

  • Universal Credit warning as 180,000 claimants have benefits stopped

    New figures released by the DWP revealed more than 180,000 benefit claimants had their payments stopped

  • Banks brace for Post Office showdown over cash access fee 

    Britain's biggest banks are bracing themselves for talks with the Post Office over a new deal to allow millions of their customers to withdraw cash at its branches. Sky News has learnt that a group of lenders including Barclays and HSBC are in the process of forming a shared interest group to represent the industry in talks with the government-owned company during the coming months. Roughly 30 banks and building societies participate in the existing deal, paying in aggregate approximately £200m annually to facilitate customer access to the Post Office's 11,500 branches.

  • Universal Credit crackdown backfires as fraud bill surges to £5.6bn

    Taxpayers have been hit with a £5.6bn Universal Credit fraud bill despite a Government crackdown on criminals abusing the system.

  • My 40-year mortgage starts today – and the interest I’ll pay is eye-watering

    On Thursday I become a homeowner. It is a dream that I have achieved precociously, thanks to the generous support of my parents.

  • If I was retiring tomorrow, I’d buy these 2 ultra-high yield FTSE dividend shares today

    Harvey Jones is thinking ahead and wondering which dividend shares he would buy to kickstart his retirement income. These two will do for starters. The post If I was retiring tomorrow, I’d buy these 2 ultra-high yield FTSE dividend shares today appeared first on The Motley Fool UK.

  • This battered UK stock could rise 181%, according to a Wall Street broker

    This UK stock’s fallen from £20.70 five years ago to just £1.35 today. But this Bernstein analyst thinks it deserves a triple-digit bounce. The post This battered UK stock could rise 181%, according to a Wall Street broker appeared first on The Motley Fool UK.

  • Three banking giants slash mortgage rates

    Mortgages are falling amid hopes central interest rates could be cut as early as the start of summer. Barclays has announced it is lowering fixed-rate mortgage deals by up to 0.45 percentage points from Friday, while HSBC and TSB have also announced smaller rate reductions.

  • DWP will look for 'two things' when it starts checking benefit claimants' bank accounts

    The DWP is set to be granted new powers in a bid to reduce the levels of fraud, debt and error in the benefits system

  • Thames Water investors to quit boards amid spectre of bailout

    Representatives of Thames Water’s multinational syndicate of shareholders are poised to quit as directors of its corporate entities after refusing to inject the billions of pounds of funding required to bail it out.

  • Warren Buffett’s stockpiling cash. Is this a warning sign for the UK stock market?

    Warren Buffett’s been converting shares into cash. I wonder what the implications are for an investor in the UK stock market, like me. The post Warren Buffett’s stockpiling cash. Is this a warning sign for the UK stock market? appeared first on The Motley Fool UK.

  • New hope for home owners as two major mortgage lenders cut their rates

    HSBC and Barclays fire the starting gun on what some advisers predict will be a new mortgage price war

  • Tesla has a 'massive cash problem': Investor

    Financial Analyst and YouTuber Kevin Paffrath joins Market Domination to discuss Tesla’s (TSLA) stock valuation and what to expect from the company by the end of the year. “My rule of thumb this year is patience for 2024,” Paffrath says, pointing to factors like the election and CEO Elon Musk’s posts on X that make Tesla a “tough” stock. “I’d like to get past not only the election — because then I think we’re going to see politics cool a little bit from the Elon point of view — but we’ll also have gotten past the shareholder vote. We’ll have gotten past the robotaxi event. We'll see how much adoption we actually get for full self-driving, ” he explains. Paffrath also says he’ll be closely watching how much cash Tesla will have by the end of the year: “I think there’s definitely a massive cash problem and that’s why I’m just saying patience this year.” For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl

  • This 13p penny stock’s on fire! Should I buy it?

    This UK penny stock has been making investors a lot of money in recent months. Is it worth buying today as a speculative investment? The post This 13p penny stock’s on fire! Should I buy it? appeared first on The Motley Fool UK.

  • With an 8% dividend yield, I think this cheap FTSE 250 stock could be one not to miss

    FTSE 250 stocks include a lot of potential passive income candidates right now, with even more 8%+ yields than the FTSE 100. The post With an 8% dividend yield, I think this cheap FTSE 250 stock could be one not to miss appeared first on The Motley Fool UK.

  • One dirt cheap income stock I’d buy in an ISA today and it’s not Imperial Brands or Vodafone

    Harvey Jones is on the hunt for a top FTSE 100 income stock at a low price. He's ruled out two big names, but he's now itching to buy the third. The post One dirt cheap income stock I’d buy in an ISA today and it’s not Imperial Brands or Vodafone appeared first on The Motley Fool UK.

  • 8% dividend yield! Buying these UK dividend shares could provide a £1,600 second income

    The dividend yields on these UK shares soar above the FTSE 100 and FTSE 250 averages. Here's why Royston Wild thinks they're worth a close look. The post 8% dividend yield! Buying these UK dividend shares could provide a £1,600 second income appeared first on The Motley Fool UK.

  • Best FTSE 100 bank shares right now: Lloyds or HSBC?

    This Fool is wondering which of these FTSE 100 bank stocks look like a better buy for his ISA today. Is it HSBC or are Lloyds shares more appealing? The post Best FTSE 100 bank shares right now: Lloyds or HSBC? appeared first on The Motley Fool UK.

  • Bill Gates Adjusts Holdings: A Closer Look at Berkshire Hathaway's Impact

    Insights from the First Quarter 13F Filing of 2024

  • April inflation data: Where are prices growing the most?

    April's Consumer Price Index (CPI) fell in line with year-over-year expectations as it rose 3.4%, while cooling below month-over-month estimates and increasing by only 0.3%. Yahoo Finance's Brooke DiPalma, Madison Mills, and Jennifer Schonberger join the Morning Brief to break down the sectors most heavily impacted by inflation. April's CPI print shows that Americans are still grappling with high food prices. Overall prices jumped 2.2% year over year, and the cost of groceries alone rose 1.1% year over year. The cost of dining out at restaurants also increased to 4.1% year over year. Meanwhile, shelter and gas combined contributed to 70% of April's monthly CPI increase. Shelter rose 0.4% month over month and 5.5% year over year, serving as a key indicator of whether the Federal Reserve's rate hike cycle is impacting inflation. Transportation costs rose 0.9% month over month and 11.2% year over year, while services rose 5.3% year over year. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Melanie Riehl