Hike in penalties imposed for mistakes in tax returns

In 2021-22 HMRC issued 89 317 penalties for careless errors made by taxpayers in their tax returns. This is an 80% increase over 2020-21 when it imposed 49 701 according to figures received in response to a freedom of information request by law firm Pinsent Masons .

However according to the information disclosure the department has taken an increasingly lenient stance towards careless errors suspending 79% of all the penalties they issued for mistakes in 2021-22 up from 60% in 2020-21 and 40% in 2019-20.

Pinsent Masons' partner Jake Landman said: ‘Where HMRC has made the decision to be lenient with individuals and businesses that made mistakes those taxpayers must take appropriate care to file their future tax returns as accurately as possible.

‘Repeatedly filing incorrect tax returns may just be the result of careless mistakes but HMRC might take the view that...