Penalties for financial executives rise in 2017-18

A further 125 chief financial officers and other senior finance executives at big businesses have been personally fined by HMRC under its senior accounting officer (SAO) regime in 2017-18 up 9% from 115 the previous year according to figures obtained by Pinsent Masons. Only 46 executives were fined under the regime in 2012-13.

Senior finance executives in the retail sector received most penalties in 2017-18 with 26 (16 in 2016-17).

The international law firm said the rise in the number of finance directors fined is likely to have been driven by HMRC’s increased focus on employment tax compliance particularly in relation to what it deems disguised employment.

Pinsent Masons’ partner Jason Collins said: ‘Finance directors need to be aware that they are personally in the tax authority’s sights if their businesses make errors in accounting. That can be particularly galling if they had no personal knowledge...