Penalties for inaccuracies in returns ― overview

Produced by Tolley in association with

Owner-Managed Businesses

Guidance

Introduction

As part of their modernisation of powers, deterrents and safeguards, HMRC introduced a harmonised penalty regime for errors in returns and documents with effect from 1 April 2009. The regime was extended to a wider range of taxes from 1 April 2010. The main legislation is found at FA 2007, s 97 and FA 2008, s 122. This legislation was brought in to simplify and harmonise the penalty regime across all of the major taxes.

HMRC has also provided the following factsheets: CC/FS7a regarding inaccuracies and CC/FS7b regarding under-assessments.

The main aim of the legislation was:

•
to align the penalty regime across direct and indirect taxes
•
to provide a deterrent to non-compliance by penalising those who fail to comply
•
to encourage the non-compliant to return voluntarily to compliance

It was also envisaged that the tiered approach under the regime would introduce fairer and more proportionate results for offences of differing levels of behaviour. HMRC made it clear in the consultation that it felt higher penalties were appropriate

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Philip Rutherford

Senior Tax Director at Molson Coors Brewing Company

Phil is the Senior Tax Director for Molson Coors' European operations. He has responsibility for both direct and indirect taxes across both EU and non-EU states. Prior to this, Phil was responsible for Molson Coors UK tax affairs covering all major taxes and duties. Phil trained at KPMG LLP, where he worked for 8 years, specialising in tax investigations across both direct and indirect tax.

Popular Articles

Corporation Tax

What are connected companies for loan relationship purposes ― practical approach

What are connected companies for loan relationship purposes ― practical approachBrief overview of the rulesThe loan relationships legislation applies to any ‘money debt’ arising from the lending of money entered into by a company, either as a lender or borrower. The rules are contained in CTA 2009,

20 Apr 2021 16:00 | Produced by Tolley Read more

Value Added Tax

Payments on account (POA)

Payments on account (POA)This guidance note provides and overview of the payments on account regime (POA). More in depth commentary can be found in De Voil Indirect Tax Service V5.110.What are payments on account?VAT registered businesses with an annual VAT liability of more than £2.3m are required

14 Jul 2020 12:52 | Produced by Tolley Read more

Owner-Managed Businesses

Interest on late paid tax

Interest on late paid taxIntroductionInterest on late paid tax is a compulsory charge set out in legislation to reflect the interest which would have accrued to the Exchequer had the correct amount of tax been paid at the right time.Harmonised legislation was introduced in 2009 to:•set statutory

14 Jul 2020 12:00 | Produced by Tolley in association with Philip Rutherford Read more

UU��ֱ��