Penalty payments from HMRC on the increase
Following the suspension of tax investigations at the start of the pandemic this year, HMRC have begun to move more staff back to compliance work in order to start collecting more penalties and fines.
The Government recently announced an extension to the coronavirus loan and furlough schemes, which will provide more potential for additional penalties. HMRC have however been fair with businesses, and allowed those who may have over-claimed under either the loan or furlough schemes to come forward and return the overpayments.
The first deadline for businesses to do so was in October 20 and HMRC have identified 27,000 ‘high risk’ cases that they will be reviewing and levelling penalties if necessary.
It is worth noting that penalties can be up to 100% of the amount of tax believed to be owed, depending on whether the claim resulted from careless errors or deliberate fraud by the taxpayer.
For further information on tax penalties, please contact Gary Brown on 023 8046 1240.