Fewer tax defaulters may be named under HMRC reforms but consequences increasing

Zoe Flude Senior Tax Consultant at Markel Tax warns that proposed changes could increase the reputational consequences for businesses and company officers

HMRC’s proposed reforms to its deliberate defaulters regime could result in fewer businesses appearing on its public “name and shame” list, while revealing more about those that do.

The proposals published on 13 July and open for technical consultation until 7 September 2026, would increase the publication threshold from £25,000 to £50,000 of potential lost revenue. However, HMRC could also publish more detail about the non-compliance and identify company officers who receive Personal Liability Notices in connection with company penalties.

“The higher threshold means fewer individuals and businesses may be published, but this should not be mistaken for a softening of the regime. In the more serious cases that remain, HMRC could disclose much more about what took place. Where a company officer has received a Personal Liability Notice and the publication conditions are met, that individual could also be named. This increases the reputational risk as HMRC could publicly identify both the company and the officer it holds responsible,” comments Zoe Flude, Senior Tax Consultant at Markel Tax.

Under the current Publishing Details of Deliberate Defaulters regime, HMRC may publish information about individuals and businesses penalised for deliberate tax non-compliance where the qualifying potential lost revenue, the tax considered to have been put at risk exceeds £25,000.

The list can include a taxpayer’s identifying details, penalties, potential lost revenue and the period of the default. It covers civil cases and is separate from criminal convictions. Taxpayers who secure the maximum penalty reduction through full disclosure are not published, while other entries can remain on GOV.UK for up to 12 months. Under the reforms, HMRC could also describe the conduct behind the penalty and identify the relevant tax and penalty types.

“Currently an entry may show that a business has been penalised and the amount of tax involved without explaining the underlying conduct. A fuller description would give customers, suppliers and business partners much more information on which to form a judgement. Although fewer cases may be published, those that remain could be considerably more revealing,” continues Zoe Flude.

The £50,000 threshold is expected to apply from HMRC’s November 2026 publication, subject to the required legislation. Separate draft powers would allow HMRC to publish details of company officers who receive Personal Liability Notices which can transfer all or part of a company’s penalty to an officer. These powers would apply to qualifying conduct after Royal Assent to Finance Bill 2026–27.

“A finding of deliberate behaviour can already lead to higher penalties and longer assessment time limits. These proposals give businesses and company officers another reason to take such allegations seriously from the outset. “Anyone facing an HMRC compliance check or investigation involving alleged deliberate conduct should seek professional advice early. The facts, behaviour classification and opportunities to disclose or mitigate penalties should be considered before positions become entrenched,” confirms Zoe Flude.

The technical consultation closes on 7 September 2026.