Huge Increase in Penalties and Tax Offenders Tagging

There have been big rises in the number of individuals placed in HMRC’s “Managing Serious Defaulters” programme, and also in the number of taxpayers being charged penalties for “deliberate behaviour” errors in their tax returns, according to a report in the professional journal Taxation recently.

Where the taxman investigates a business or individual and finds errors in the tax returns, then HMRC can charge tax-geared penalties.  The penalties are a percentage of the additional tax payable.  The amount of the penalty depends on the behaviour that led to the error.  Deliberate errors can have a penalty range of 50-100%; and up to 200% where an offshore bank account or asset is involved.

Where deliberate behaviour penalties are charged HMRC can also put the taxpayer in in the Managing Serious Defaulters (MSD) programme.  This is a form of tagging or a tax ASBO: where the tax inspectors then carry on closely monitoring the person’s tax affairs for the following 2 to 5 years.  If HM Revenue and Customs find further errors in that period, they are likely to charge swingeing penalties, or even prosecute.

The number of individuals and businesses charged with penalties for deliberate behaviour rose from 5,162 in 2012/13 to 14,401 in 2013/14.  The number of people placed in the MSD programme rose from 4,624 to 6,051.

How can Lynam Tax Enquiry Experts help me get a lower penalty?
Lynam Tax Enquiry Experts are specialists in tax penalty negotiations.  Our expertise often substantially reduces, and sometimes eliminates, the penalties that the taxman is demanding. We have helped hundreds of taxpayers achieve substantially lower penalties than those first sought by the taxman; including zero penalties in many cases.

NB. If you, or your client, are facing tax geared penalties, naming and shaming, or the Managing Deliberate Defaulters programme, Lynam Tax Enquiry Experts can help.  The earlier in a tax investigation or dispute you involve us the more we can potentially save you: in tax, interest, penalties and general grief and hassle.

For a free, confidential and no obligation discussion call today:

Paul Lynam :  0845 643 9997

Andrew Nutbrown :  07718 778710

or email