In June 2026, the Government published a document to gather views on the introduction of a criminal offence for making reckless or untrue statements relating to tax.
The Institute of Chartered Accountants in England and Wales (ICAEW) has warned that the proposal risks confusing taxpayers and discouraging voluntary disclosures.
Instead, the ICAEW has advised HMRC to make ‘better use of its current powers,’ before criminalising ‘reckless offences.’
Is the offence needed?
The Government has justified the offence as a way of providing consistency between indirect and direct offences, mirroring what is in place for indirect taxes.
For example, untrue statements relating to VAT and customs can be prosecuted, or where an individual has submitted incorrect documents knowingly and recklessly, without HMRC having to prove dishonesty.
No equivalent exists for direct taxes.
The Government argues the new offence would create an enforcement tool that could be used in direct tax cases where dishonesty is unable to be established, but a sanction is needed.
This would not only apply to taxpayers, but also agents who recklessly make a statement or declaration to HMRC on someone else’s behalf.
How does the ICAEW view the proposed change?
The ICAEW strongly opposes the introduction of the new offence. It noted that the equivalent offence for indirect tax offences is rarely used, which raises doubts over whether it is even effective.
ICAEW suggests the change should be scrapped, as it views HMRC as already possessing the powers it needs to handle non-compliance.
The larger worry is with the definition of ‘reckless’, with the ICAEW suggesting most taxpayers and advisers might struggle to understand how it could be applied.
As the current tax system already categorises behaviour into careless, deliberate and fraudulent, another definition might cause added confusion.
Where the line is hard to draw, compliance checks will be hard to enforce.
Speaking to an accountant
Reaching out to an accountant can help ensure that statements are evidenced when you file, alongside clear records of the decisions and checks made.
If a claim or treatment might be deemed as uncertain, seeking advice before it is submitted can help you flag potential issues before a compliance check arises.
Reach out to an accountant to make sure your tax claims are properly evidenced.