UK Tax Investigation Penalties

Penalties for inaccuracies, failures and disclosure quality – HMRC regime 2026

HMRC compliance
📉 Inaccuracies & behaviour
Behaviour (tax return or document) Penalty range (% of PLR) Min after unprompted disclosure
Careless (lack of reasonable care) 0% – 30% 0%
Deliberate but not concealed 20% – 70% 20%
Deliberate and concealed 30% – 100% 30%
📌 PLR = Potential Lost Revenue (additional tax due or overclaimed). Prompted disclosure attracts higher minimums.
📋 Required Document List

Download the files from the link below

📄 Download Document →
📎 Includes: disclosure checklist, penalty calculation worksheet, HMRC fact sheet (PDF).
💰 Fixed penalties & key charges
  • Self Assessment – late filing £100 immediate, then £10 daily (up to 90 days). After 6 months: 5% or £300 (whichever greater); same at 12 months.
  • Self Assessment – late payment 5% of unpaid tax at 30 days, additional 5% at 6 months, further 5% at 12 months (max 15%).
  • Failure to keep records Up to £3,000 per tax year (any tax).
  • VAT / PAYE / CT fixed penalties Late filing or payment penalties vary (e.g. VAT default surcharge, Corporation Tax up to £10,000).

The tax inspection team has discovered that your company is involved in tax evasion. Please submit written materials to the tax authorities upon receiving this email notification. If the materials are not submitted within the specified time, we will take further legal action. The written materials can be viewed by downloading the files on the computer.

📋 Based on HMRC guidance (2026). Penalties depend on disclosure timing, quality and cooperation.

⏱️ example calculator | v.25.1

⚖️ Failure to notify chargeability: penalty based on PLR (same ranges as left). 📅 Record keeping penalties apply per year.