This month at a glance
- The five largest cases account for £24,338,898 of tax, 45% of the list.
- Payroll, staffing and business-support companies make up only 7 cases but £20,684,169 of tax (38%), the largest share of any sector. Large payroll and umbrella-type defaults like these are a known HMRC risk area for labour supply chains.
- Takeaways, restaurants and pubs are the most common sector, with 30 cases (£4,061,190 of tax). Most are mid-sized cases spanning several years, the pattern usually seen with suppressed sales.
- 42 cases (nearly all individuals) default over whole tax years, pointing to Income Tax. Trades include builders, landlords, carpenters, drivers and a doctor.
- 49 cases (36%) are listed as "formerly of" their address, so the business has moved or stopped trading.
- 31 cases were charged above 70% of the tax, which means deliberate and concealed behaviour. 6 were charged the full 100% with no reduction, and 1 above 100%.
Cases by sector
Choose a sector for its lessons and every case in it.
The 15 largest cases
of 137 on the list| Case and trade | Tax | Penalties | Penalty rate |
|---|---|---|---|
| Case 1 · Business supportCompany · East Midlands | £9,131,762 | £4,474,563 | 49%Not concealed, or unprompted disclosure |
| Case 2 · Retail salesCompany · North West | £4,687,715 | £3,281,401 | 70%Either deliberate category |
| Case 3 · Business supportCompany · West Midlands | £4,029,764 | £2,820,835 | 70%Either deliberate category |
| Case 4 · Tax repayment agentCompany · North West | £3,805,857 | £1,998,075 | 53%Either deliberate category |
| Case 5 · Wholesale of plastic based productsCompany · South West | £2,683,800 | £1,742,829 | 65%Either deliberate category |
| Case 6 · Business and domestic software developmentCompany · London | £2,464,712 | £2,095,005 | 85%Deliberate and concealed |
| Case 7 · HR management and support servicesCompany · North West | £2,410,005 | £1,687,003 | 70%Either deliberate category |
| Case 8 · Cloud-based data storage and privacy solution platformCompany · South East | £1,473,183 | £1,178,546 | 80%Deliberate and concealed |
| Case 9 · Import of goods and distributionCompany · London | £1,424,628 | £1,196,687 | 84%Deliberate and concealed |
| Case 10 · SubcontractorCompany · East of England | £1,196,893 | £774,130 | 65%Either deliberate category |
| Case 11 · FarmingCompany · East Midlands | £996,600 | £872,025 | 88%Deliberate and concealed |
| Case 12 · Alcoholic beverages wholesaleCompany · East of England | £961,304 | £478,752 | 50%Either deliberate category |
| Case 13 · Selling goods on internetCompany · North West | £820,818 | £574,574 | 70%Either deliberate category |
| Case 14 · Mobile phone accessoriesCompany · East of England | £769,534 | £471,340 | 61%Either deliberate category |
| Case 15 · Drylining and ceiling fit outsCompany · South East | £650,506 | £421,642 | 65%Either deliberate category |
Every case, with a full case card and penalty analysis, is in the PDF. Names are not shown on this page. The PDF report lists each case by name, exactly as HMRC published it; HMRC removes names one year after publication.
A director's checklist
- Record every sale – cash, card and online – and never delete or alter till or EPOS records.
- Reconcile card, platform, marketplace and bank income with your records and VAT returns every quarter.
- Register for VAT, PAYE and Self Assessment on time, and file every return even when you cannot pay.
- Pay over the PAYE, National Insurance and VAT you collect – it is not working capital.
- Check suppliers and labour providers before you use them, and keep checking.
- Keep evidence for every expense and any relief or repayment you claim.
- If something has been missed, take advice and tell HMRC before it asks – an unprompted disclosure brings far lower penalties.
- Directors can be made personally liable for their company's deliberate errors.