Terminal illness and tax penalties: Helping Peter with compassion and expertise

A few years ago, Peter stopped working due to serious health issues. He lives with multiple sclerosis, which can affect his thinking and concentration, and has been diagnosed with terminal cancer.

He cares for his wife, who is disabled and unable to work. Together, they live on limited income, with Carer’s Allowance and Universal Credit of just a few hundred pounds a month.

While working, Peter was classified as self-employed. However, it was suspected that his employer classed many of its workers as self-employed to avoid paying National Insurance contributions (NIC). In reality, Peter was more like a standard employee, which raised concerns about the legitimacy of his self-employment status.

Although Peter had submitted his paper tax returns by post, HMRC had not received them. This may have been because they went to the wrong address. Before HMRC found the forms, they had already issued late filing penalties of £4,800 across three tax years. 

In some distress, Peter contacted us. Our volunteer, an expert in tax issues for those on low incomes and with health issues, worked with Peter on an appeal against the fines. Together, they outlined Peter’s circumstances and asked HMRC to review the penalties.

A month later HMRC accepted the appeal. They confirmed that all the late filing penalties had been cancelled, leaving Peter to concentrate on his own health and his wife’s.