New penalties on tax returns

New penalties on tax returns
The HMRC have announced that they have changed the way in which they calculate the fine given to someone or their business for making a (deliberate or non-deliberate) error on their tax return. These changes came into effect during December 2017.

There is an overall increased in the price of a penalty from the way in which they were calculated previously. If you fill out your tax return yourself it’s important that you are aware of these penalties in advance.

What are the HMRC penalties?

The penalty is a fine based on the percentage of the potential lost revenue, and the percentage is measured by the nature of the error.

·      If a person is careless in their tax return and they make a few minor mistakes, they will receive up to a maximum 30% fine of the potential lost revenue.

·      If the mistake in question is deliberate but not concealed they will be in the bracket between a 20%-30% fine.

·      Finally if the error is deliberate and concealed, then they will be in a bracket between 50%-100% fine.

What do you do if you notice an error in your tax return?

If you have been submitted your tax return yourself or if your accountant has done this for you and you notice an error it’s important to notify HMRC as soon as possible. The penalties for reporting an error without being prompted by HMRC are lower than if they notice the mistake.

It’s also important to note that if you discover an error after three years since a tax return has been made, a minimum of 10% will be added to the final penalty, whereas if HMRC notify you it will be 25%.

If you think that you may have submitted your tax return with some inaccurate information then you can contact us and we can advise you what to do next. You can send us an email at This email address is being protected from spambots. You need JavaScript enabled to view it.  or call 0115 956 9452.
Key points from Autumn Budget 2017
New regulations for Landlords within Nottingham.

Related Posts