Can I receive a tax an HMRC tax penalty even if I have nothing to pay? Yes, you certainly can!
For anyone who thinks that having “nothing to pay” means “nothing to file,” this case is a wake-up call. Filing requirements don’t hinge on your tax bill—they hinge on HMRC’s instructions. If you’re told to file, you need to file.
There’s a lesson in every tax case, and in Ricketts v HMRC [2025] UKFTT 422 (TC), that lesson is painfully clear: don’t assume, and don’t delay. It is another case of a penalty for failure to file HMRC tax return.
David Ricketts found himself on the receiving end of two penalties after filing his 2021–22 tax return months late.
The fines amounted to £610: £100 as an initial charge for missing the deadline, and a further £510 in daily penalties because the delay stretched beyond three months. Mr. Ricketts, a Canadian national who had been living in Spain for several years, said he didn’t believe he needed to file a return. He owed no tax, and thought HMRC already had all the information it needed through PAYE and Covid-related grants.
His wife, who helped him, also believed the return wasn’t necessary. On top of that, he described the UK’s tax system as confusing, especially after changes brought on by Brexit and the pandemic, and said he couldn’t afford professional help after his tutoring business collapsed during Covid.
But the Tribunal wasn’t moved. They pointed out that the requirement to file had been clearly communicated—he’d signed up for digital correspondence and received the notification through his personal tax account. He even opened the message. And while his confusion and financial hardship were understood, they didn’t qualify as a legal “reasonable excuse.”
Why not? Because the law is clear: neither misunderstanding the rules nor relying on someone else is enough to escape penalties. And while hardship may be taken into account in other parts of the tax system (like arranging payment plans), it doesn’t wipe away the obligation to file a return on time.
For a free no obligation chat about any of the matters detailed above, please do get in touch for help. An expert will call you back or if you prefer exchange emails.
We can explore your situation and consider the best way to help you and your business needs. You can call us 020 3925 3613 or fill in the form below and will get back to you quickly. We Know Insolvency Inside Out.
What Next?
Expert Advice Is Just A Click Away
If you have any questions, queries or concerns, then give us a shout. We Know Insolvency Inside Out.
Our expertise is at your fingertips.
Disclaimer:
This page is not legal advice and is not to be relied upon as such. This article Can I Receive An HMRC Tax Penalty Even If I Have Nothing To Pay? is provided for information purposes only. You should take independent advice on the facts of your case. No liability is accepted for reliance upon this post.
Recent Posts / View All Posts
