Everyone suffers illness (or injury) from time to time. Covid-19 has been a stark reminder of how fragile life can be. For tax purposes, illness can result in tax compliance failures. However, penalties for late tax returns and payments do not apply if there is a reasonable excuse for the compliance failure, provided the failure… Read More »
HM Revenue and Customs (HMRC) promises in its ‘Charter’ to “treat you fairly”. However, in practice HMRC can sometimes seem heavy-handed when applying its powers. Many appeals by taxpayers to the tax tribunal concern the imposition of penalties by HMRC. The rates and amounts of penalties can be eye-watering. For example, the standard maximum penalty… Read More »
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 »
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 »
Tax compliance is difficult and complex. Making a mistake in a tax return is a distinct possibility for many taxpayers. Was it a penalty? The penalty regime for errors in tax returns, etc. states that no penalty is charged in respect of a tax return error if ‘reasonable care’ has been taken. However, penalties can… Read More »
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 »