HM Revenue and Customs Brief 30/08
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Issued 12 June 2008
Learn how your clients can avoid penalties
We have published a learning package (http://www.hmrc.gov.uk/about/new-penalties/NPA/HTML/NPA_menu.html)
to help agents and taxpayers understand the new penalty regime.
This package, published on our website, is also being rolled out to 28,000 of
The module takes less than half an hour to complete and provides an overview
of the new system.
It will help advisers understand the potential impact on their clients.
During this financial year they have the opportunity to help their clients
identify and correct potential errors and weaknesses in their systems before the
new penalty regime starts from 1 April 2009.
The new penalties
The key points are:
- the new penalties are one of the first pieces of cross-cutting legislation
designed to make the tax system simpler and more consistent
- if taxpayers take reasonable care to get their tax right, we will not
penalise them, even if they make a mistake
- if they do not take reasonable care, errors will be penalised and the
penalties will be higher if the error is deliberate
- telling us about errors, especially if this is unprompted, can
substantially reduce any penalty due
Most people take care to fill in their tax returns and documents correctly.
We want to encourage that and help them get it right. It uses penalties to stop
people who do not take care from gaining an unfair advantage.
The new penalties are for errors on returns and documents initially for
Income Tax, VAT, PAYE and National Insurance contributions (NICs) paid by
employers, Capital Gains Tax, Corporation Tax and the Construction Industry
For these taxes, it applies to returns or other documents for tax periods
starting on or after 1 April 2008 that are due to be filed on or after 1 April
2009. The relevant legislation is Schedule 24 of Finance Act 2007.
This year’s Budget proposed to extend the new penalties to almost all the
taxes we collect - see
Notice 96 (PDF 66K).
In addition to the learning module, our Internet page (http://www.hmrc.gov.uk/about/new-penalties/index.htm)
for new penalties, has frequently asked questions, a leaflet, and technical
guidance, which are updated. There is an email address for queries.
Revenue & Customs Brief 19/08 also explains in more detail how the penalties
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Article Published/Sorted/Amended on Scopulus 2008-06-20 11:35:39 in Tax Articles