In 2018/19 HMRC issued penalties of £816m, an increase from £620m in 2015/16 according to official data. This represents an increase of nearly 32% in three years!
This is a much faster rate of increase then the amount of tax collected by HMRC, which has increased by 19.2% from £495bn to £590bn over the same period.
The data illustrates how much more effective HMRC has become in targeting non-compliance, largely as a result of improvements to its Connect software system, which now has enhanced capability and wider access to data sources, enabling it to check information reported in tax returns against bank accounts.
If you need assistance in completing your tax return, please contact us on either 01788 539000 or 0116 261 0061.