HMRC consult on reforming behavioural penalties
26 March, 2025
The Government have today issued a consultation which considers how to simplify and strengthen penalties which are calculated based on taxpayer behaviour.
The focus is on error penalties in Schedule 24 Finance Act 2007 and failure to notify penalties in Schedule 41 of Finance Act 2008.
The consultation will explore options to:
- Simplify the ways in which penalties are calculated and applied, to make them easier for HMRC to administer and for taxpayers to understand;
- Strengthen penalties for individuals and businesses who deliberately (and repeatedly) underreport their income or sales; and
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Provide simpler, fairer outcomes for those who make genuine, one-off mistakes.
There is a 12 week consultation period until 18 June 2025, and if you have any views or comments that can be used to help shape the ATT's response, please email Steven .