HMRC appears to be taking a tougher line on penalties that are due following a tax investigation.
Where it believes you should have known better, HMRC is treating tax return mistakes as deliberate errors. That raises the starting point for penalties to 35% of the undeclared tax. In this situation ask for your case to be reviewed by another inspector. If that fails to reduce the penalty, threaten to take your case to a tribunal.
Contact us for further information and assistance on this.