Tag Archives: Penalties

Penalties: Let’s be reasonable!

Tax return filing season is well and truly here. Unfortunately, many individuals within self-assessment will submit their return after the filing deadline (i.e., normally 31 January after the end of the tax year) and face a penalty from HM Revenue and Customs (HMRC). Excuses, excuses… However, there is an exception from late filing penalties if… Read More »

Penalties: A special reduction!

It is worryingly easy to inadvertently incur penalties for non-compliance with tax obligations. The eye-watering powers of HM Revenue and Customs (HMRC) are underpinned by penalty regimes for non-compliance with various statutory requirements. However, some penalties are subject to exceptions and ‘let-outs’ in certain circumstances where a tax compliance failure has occurred. This potentially applies… Read More »

Penalties: Don’t take too long!

The penalty regime for errors in tax returns etc. (FA 2007, Sch 24) provides an escape from penalties if an error has arisen despite ‘reasonable care’ having been taken. Otherwise, the maximum penalty (i.e. 30% to 100% of ‘potential lost revenue’; or possibly higher if the error involves an offshore matter) depends on the type… Read More »