Date posted: 11th Jul 2022
Recent data suggests that penalties imposed by HMRC were £571m in 2021/22.
Whilst these penalties will cover a range of taxes and some will relate to tax avoidance scheme penalties, the number is still staggering and there will be a significant figure in relation to late filing tax return penalties and penalties where reasonable care has not been taken.
Anyone who has not yet filed their 2020/21 tax return will be subjected to daily £10 penalties and a further penalty, if the tax return is not filed / tax is not paid by 31 July 2022.
In addition, HMRC are increasing enquiries into taxpayers affairs and charging penalties where reasonable care has not been taken – this could be the non-declaration of rental income, overseas income or where there are errors in the information actually declared. It is important that if you are in this situation, that you come forward and notify HMRC of your intention to make a disclosure, as this will lower any penalties charged by HMRC.
If you need assistance with tax compliance obligations or appealing HMRC penalties, please give us a call.