Overview
- This week media reports revealed HMRC plans to send formal notices about return errors and treat failures to amend as deliberate behaviour under a new 'notice‑and‑cure' approach.
- Under the proposal reclassified errors could face a much longer assessment window of up to 20 years instead of the current six years for careless mistakes.
- Exact penalty levels are unresolved and reports differ widely with some outlets citing a sliding scale up to about 30% and others reporting figures as high as 100% of unpaid tax.
- HMRC says the change is meant to speed corrections and reduce penalties for those who act quickly, while tax advisers warn that ordinary taxpayers who file without professional help could be unfairly exposed.
- No implementation timetable or final rules have been published and the proposals are under consultation, with commentators noting the change sits within a broader government effort to close the tax gap.