Penalties for Tax Report Errors: HMRC Tightens Tax Oversight in 2025
Starting in 2025, the UK tax authority (HMRC) has intensified scrutiny of Self-Assessment tax returns. Now, penalties can be issued not only for late submissions but also for accidental errors in your tax return. Even a typo or formal inaccuracy may cost you money.
What HMRC now considers an error:
• Understated income (even if unintentional)
• Overstated expenses without proper receipts or invoices
• Incorrect UTR or address
• Wrong tax status (e.g., LTD director filing as self-employed)
• Any other inaccurate or incomplete data
Penalty amounts depend on the type of error:
-
Careless error
If you didn’t double-check your return or relied on an unqualified advisor
Penalty: Up to 30% of the underpaid tax -
Deliberate misstatement
If you knowingly underreported income or overstated expenses
Penalty: 20% to 70% -
Intentional income concealment
If you tried to hide income to avoid taxes
Penalty: Up to 100% or more; criminal liability may also apply
📌 Important: Even if your return is submitted by an accountant, you remain legally responsible as the taxpayer.
What to do?
Double-check your returns carefully — or better yet, hire qualified professionals.
At Capital Empire:
• We work officially and under authorization
• We review all reports before submission
• We challenge unfair HMRC penalties
We speak your language and know how to defend your interests
