Thousands are fined by HMRC even though they don’t owe any UK tax

There are concerns about the extent to which people who are vulnerable or facing financial hardship are being issued with the penalties for failing to submit a self-assessment tax form on time. Photograph: Ascannio/Alamy

Tens of thousands of people who earn too little to pay tax are still receiving hundreds of pounds in fines for failing to file a tax return on time, according to new data seen by the Observer.

More than 83,000 people earning less than the threshold were issued with a £100 penalty by the tax authorities in 2021-22. Only 17,000 of those fines were later cancelled on appeal. By contrast, only 20,000 people earning £100,000 or more were penalised.