New penalties for errors on tax returns and documents
Please find below a blog which you might find of interest from my colleague Cathy Corns, who writes for our sister blog SME Plus...
HMRC has published new guidance on the new penalty provisions that will apply from April 2008.
HMRC states that it has designed the new penalties so that:
- If people take reasonable care when completing their returns they will not be penalised.
- If they do not take reasonable care errors will be penalised, and the penalties will be higher if the error is deliberate.
- Disclosing errors before HMRC find them will substantially reduce any penalty due.
The new penalties initially apply to VAT, PAYE, National Insurance, Capital Gains Tax, Income Tax, Corporation Tax and the Construction Industry Scheme.
Further information can be found at:
http://www.hmrc.gov.uk/about/new-penalties/penalties-leaflet.pdf
http://www.hmrc.gov.uk/about/new-penalties/faqs.htm
