Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Number of firms fined for deliberate corporation tax misinformation hits four-year high

by August 22, 2022
August 22, 2022
Number of firms fined for deliberate corporation tax misinformation hits four-year high

The number of businesses fined by HMRC for deliberately obscuring their corporation tax affairs has climbed to its highest level in four years.

The tax man last year penalised 62 firms for purposefully sending incorrect information to possibly slash the amount of corporation tax they pay, up 35 per cent from 46 in the previous year, according to a freedom of information request response from HMRC.

Despite the uptick in fine volumes, HMRC is watering down the amount of money it asks businesses to cough up for obfuscating their tax affairs.

The average corporation tax penalty issued by the taxman fell 72 per cent over the last year to £4,845, down from £17,454.

Total corporation tax fines hit 100 last year, up from 86. The total value of fines issued last year dropped to £485,000 from £1.5m.

HMRC sets the size of a corporation tax fine based on the severity of a firm’s mistakenly filed tax return. If a business deliberately sends incorrect information, HMRC can issue a fine of up to 70 per cent of the tax owed.

The value of fines for the most serious cases of firms sending incorrect corporation tax information were not disclosed because the figures “could identify individual entities,” HMRC said.

Experts said a drop in profits caused by the pandemic-induced economic shock could have pushed down the value of fines levied by HMRC

The drop in fine values may have been driven by “lower profits in the pandemic era meaning the tax at stake and the penalties were both lower,” said Abigail McGregor, legal director at law firm Pinsent Masons.

McGregor also warned pressure on the UK’s public finances caused by the government ramping up spending in response to the Covid-19 crisis means the taxman “is really focused” on grabbing as much revenue as possible.

Corporation tax is a levy on businesses’ profits. The UK’s rate is currently 19 per cent, but it is set to climb to 25 per cent after former chancellor and Tory leadership hopeful Rishi Sunak announced an uplift at the March 2021 budget.

His rival in the race to Number 10, Liz Truss, has pledged to reverse the six percentage point rise. Her campaign declined to comment. Sunak’s campaign did not respond in time to a request for comment.

An HMRC spokesperson said that penalties are “calculated as a percentage of the amount of the tax error, rather than a set penalty figure.”

HMRC can issue a bigger fine if it independently discovers the tax return mistake. Firms that identify the error themselves and tell HMRC are hit with a lower penalty.

John O’Connell, chief executive of the TaxPayers’ Alliance, said that ministers need to make “sure that those who don’t pay their fair share [of taxes] face the consequences” and that the tax regime needs to be simplified.

 

Read more:
Number of firms fined for deliberate corporation tax misinformation hits four-year high

0
FacebookTwitterGoogle +Pinterest
previous post
P&O Ferries won’t face criminal action over mass sacking of staff
next post
Company Voluntary Agreements plunge as taxman tightens debt recovery rules

You may also like

Record year for Ferrari sees supercar maker profits...

February 1, 2024

Virgin Money to close a third of UK...

July 20, 2023

Paris hotels see surge in revenue as Olympic...

August 1, 2024

Nato’s $1bn Fund Backs British Start-Up to Build...

June 19, 2024

Why have annuities made a comeback for UK...

September 1, 2023

Thoroughbred Horses in the UK Becoming a Globally...

December 6, 2024

Has Hunt done enough to stave off another...

October 15, 2022

Ulugbek Shadmanov’s case and UK Investment in Uzbekistan

January 27, 2025

Prospect of insolvency for UK businesses set to...

June 27, 2023

CBI warns Rishi Sunak against ‘doom loop’ of...

October 26, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,570)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved