Penalties likely to rise as HMRC steps up investigation work

The value of penalties HMRC is imposing on taxpayers each month is rising after falling during the start of the lockdown in spring says UHY Hacker Young.

There was a reduction in HMRC’s normal investigation work during lockdown as many staff were deployed to help taxpayers with emergency coronavirus assistance – such as deferrals of tax and the introduction of the furlough scheme. During this period the amount taken from penalties fell 36% from £730m to £468m in the year to 30 September 2020.

UHY Hacker Young says further increases in penalties are likely as HMRC shifts more of its staff back to compliance work and steps up investigations into the misuse of support schemes such as the coronavirus job support scheme.

Sean Glancy partner at the firm said: ‘The lull in HMRC investigations is largely over.’ He advised people who may...