New Tax Return Penalties
So what taxes will be subject to the new penalty regime and when will it start?
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The new penalty is initially for errors on your tax return and documents for VAT, PAYE, National Insurance, Capital Gains Tax, Income Tax, Corporation Tax and the Construction Industry Scheme. It does not apply to Tax Credits or the National Minimum Wage.
For these taxes, it applies to tax returns or other documents for tax periods that started on or after 1st April 2008 that are due to be filed on or after 1st April 2009. |
Those who don’t take reasonable care to get their taxes filed correctly may incur a penalty for errors made during 2008-09 and later years.
If people take reasonable care in completing their tax returns they will not be penalised. If they do not take reasonable care errors will cause penalties, and the penalties will be higher if the error is deliberate. Disclosing errors to the HMRC early will substantially reduce any penalty due.
The penalties are a percentage of the potential lost revenue - the tax understated or overpaid as a result of the error. The percentages are stepped and are increased the more serious the underlying behaviour causing the inaccuracy is. The penalty could double the amount of tax due.
What can I do to reduce a penalty?
The most important answer here is to seek professional advice. TaxAssist Accountants have experienced accountants suited to your needs. We also have tax return analysis software which will analyse the completed tax return to check for anything which may be flagged up by HMRC.
If you would like to speak with a TaxAssist Accountant then call us now on 0845 0176961 or fill out our contact form for a free consultation.
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