Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will take steps to ensure that HMRC does not impose (a) penalties and (b) interest on (i) people and (ii) businesses who make inadvertent errors on their tax returns.

This question was answered on 17th November 2025
Financial penalties encourage taxpayers to comply with their obligations and act as a sanction for those who fail to comply. HMRC recognises that people may make inadvertent errors and does not charge a penalty provided the customer has not failed to take reasonable care in completing their return.

If a penalty for an inaccuracy is charged by HMRC, a person can also appeal against our decision to impose a penalty.

Interest is only applied to any outstanding liability. If a corrected error shows no outstanding amount, no interest will be charged.