HMRC penalties are instrumental in allowing HMRC to bring in additional revenue from its compliance activities. Compliance yields have continually increased since 2011, which coincides with HMRC’s new penalty powers. HMRC’s power to impose financial penalties on taxpayers broadly falls into the following categories:-
- Penalties for late filing of returns and paperwork or late payment.
- Penalties for errors on returns, payments and paperwork.
- Failure to notify penalty.
- Failure to comply with Information, Inspection & Data Gathering powers.
HMRC wants to understand how and why the late filing, error or failure occurred and closely scrutinises your underlying behaviour at the time. This conduct/behaviour is key to HMRC deciding whether a financial penalty should be charged and determining how much any penalty should be.
See our guide to Minimising Tax Evasion Penalties
How can we help?
We have a proven track record in mitigating and challenging HMRC penalties to best protect a client’s position. We will defend your position in respect of any HMRC penalty we do not agree. Where errors are accepted, we will maximise the potential factors available to mitigate any penalty. Where applicable, we will present ‘reasonable excuse’ and ‘innocent error’ arguments to waive the penalty. Our detailed knowledge of how HMRC penalties work helps our clients avoid them, mitigate them to their absolute minimum and even, in appropriate cases, get them suspended.
We provide a discreet and comprehensive service that is tailored to meet your unique needs and protect your interests. We will present you all available options and what the consequences of taking each option will be. We aim to formulate and agree an overall strategy so as to try to conclude matters quickly and efficiently.
Request a callback or meeting
If you'd like us to give you a call, fill in your details below and we'll email to arrange a good time to speak to our Head of Tax investigations team, Mark Taylor. All communications are in the strictest confidence.