HMRC plans to use the policy to improve compliance and free up resources so it can focus on more complex cases of tax avoidance.
But experts have warned the proposals could impose a “greater burden” on taxpayers.
Nimesh Shah, of accountancy firm Blick Rothenberg, said: “Most people are not represented by a tax adviser – and so taxpayers may genuinely not know when they have made an error and could find themselves exposed to higher penalties.”
He pointed out that government changes have made the tax system increasingly complicated and this could increase the risk of taxpayers filing inaccurate tax returns.
“A taxpayer may make an innocent mistake because they don’t understand the rules,” he said.
Helen Buchanan, of law firm Freshfields, said the change would be “particularly problematic” for large companies. “The consequences of a deliberate penalty can be severe, both financially and reputationally,” she said.
