Consultation outcome

Tackling the hidden economy: sanctions

• From: HM Revenue & Customs
• Published: 26 August 2016
• Last updated: 20 March 2017 — See all updates

This consultation has concluded

Read the full outcome

Tackling the hidden economy: sanctions - summary of responses

PDF, 356 KB, 22 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Detail of outcome

The consultation considered the case for introducing escalated penalties for repeated non-compliance. Most respondents agreed with the principle of levying escalated penalties for repeated non-compliance. Many stakeholders believed that any new penalty model should be simple, clear and fairly applied. Many respondents also signalled that the design of any new penalties regime should be based on a good understanding of why some taxpayers are non-compliant.

The consultation also made a case for strengthened monitoring for those found to be operating in the hidden economy. Many respondents welcomed the proposal to strengthen monitoring for hidden economy activity, and would like to see this accompanied by increased HMRC engagement, communications and general tax education.

The government will consider the design of a stronger ‘failure to notify’ hidden economy penalty which will be delivered as part of the longer term HMRC Penalties Review. HMRC will strengthen its monitoring of taxpayers previously found to be operating in the hidden economy, to keep them compliant.

---

Original consultation

Summary

A consultation on the potential for new sanctions to tackle hidden economy activity, including repeated non-compliance.

This consultation ran from
9:30am on 26 August 2016 to 11:45pm on 21 October 2016

Consultation description

This consultation explores the potential for new penalties and sanctions to tackle those operating in the hidden economy, including those who have already been penalised for non-compliance, but have not changed their behaviour.

This consultation propose some options for new sanctions, and seeks views on how those might be designed fairly and effectively to deter hidden economy activity.

Documents

Tackling the hidden economy: sanctions

PDF, 336 KB, 31 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Published 26 August 2016
Last updated 20 March 2017 + show all updates

1. 20 March 2017

   Summary of responses published

2. 26 August 2016

   First published.