In a policy shift announced on 24 September 2026, HM Revenue & Customs (HMRC) confirmed it has raised the financial threshold for publication on the List of Deliberate Tax Defaulters from £25,000 to £50,000 in tax-geared penalties. The change, effective immediately, applies to penalties notified on or after 1 October 2026. HMRC states the increase reflects inflation since the regime’s 2010 inception and aims to focus public naming on the ‘most serious’ cases. Concurrently, HMRC published updated internal guidance (CH190600) instructing officers to consider ‘cumulative deliberate behavior’ across multiple tax heads and years when assessing the threshold, potentially capturing taxpayers with multiple smaller penalties that aggregate above £50,000.
Key Takeaways
- Reduced Publication Volume: HMRC estimates the higher threshold will reduce quarterly publications by approximately 35%, based on historical penalty distributions, concentrating reputational sanctions on larger-scale evasion.
- Aggregation Risk: The new ‘cumulative’ approach means taxpayers with deliberate penalties across Income Tax, VAT, and Corporation Tax—each below £50k individually—could still be published if the aggregate exceeds the threshold.
- Strategic Settlement Incentive: Taxpayers in compliance checks now have a stronger incentive to negotiate penalties below £50k per tax head to avoid publication, potentially altering the dynamics of HMRC’s Contractual Disclosure Facility (CDF) negotiations.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement