The inaccuracy penalties
HMRC have published an updated summary of changes to the ‘inaccuracy penalties’ from 1 April 2010. The scope of penalties has increased to include environmental taxes, excise duties, inheritance tax, insurance premium tax and stamp duties. The penalties will apply to tax filings due on or after 1 April 2010.
This is in addition to the inaccuracy penalties for income tax, VAT, employers PAYE, national insurance contributions, Corporation Tax, Capital Gains Tax and the Construction Industry Scheme which have been in place since April 2009.
The inaccuracy penalty system has been introduced to make penalties simpler to understand and more consistent across the taxes. The penalties can range from 0% where reasonable care is taken but nonetheless an incorrect return is submitted up to 100% of the tax where an error is deliberate and the taxpayer attempts to conceal it.
Taxpayers still have the right to appeal to a Tribunal or request an independent internal review by HMRC.