The number of fines issued by HMRC to freelancers and landlords spiked last year in a supposed attempt to close a £32bn tax gap.
According to The Telegraph, HMRC civil servants were put under pressure to bring in as much money as possible, resulting in 90,000 penalties being issued in the 2021/22 tax year – up from 49,700 from the previous year.
Experts say that HMRC are cracking down on mistakes to make up for the tax gap and pandemic schemes such as the furlough scheme.
Several fines were issued for careless mistakes on self-assessment returns filed during the lockdown. Some fines were also issued due to incorrect calculations due to not having physical receipts.
Many landlords opted to complete their return themselves rather than use an accountant during the last tax year. If you have a complex tax situation, it is always beneficial to seek advice from an accountant or professional.
Rachel Roberts is a Senior Tax Accountant and would be happy to chat through any queries or concerns you have on 01242 776000 or rachel.roberts@randall-payne.co.uk.
