Those on the lowest incomes are being hit hardest by tax penalties, a non-profit says.
Nearly 12 million self-employed people need to fill out self-assessment tax returns each year.
Fines of £100 are automatically issued to people if they fail to file an online return by 31 January each year. Mr Neidle said HMRC was acting in good faith but needed to realise the impact its heavy fines were having on people who may not realise they earn too little to owe any tax. "HMRC has sophisticated computerised systems. And those systems have not been distinguishing between people who have tax to pay and haven't filed and people who have no tax to pay and haven't filed," said Mr Neidle.
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