Penalty shootout

17 January 2007 / Francesca Lagerberg

Issue: 4091 / Categories: Comment & Analysis , HMRC powers , Admin

FRANCESCA LAGERBERG considers the new HMRC consultation on penalties for incorrect tax returns.

MENTION THE WORD 'penalties' in the same sentence as English football and you will probably assume that England is about to lose a crucial cup tie. However as an early Christmas present HMRC gave us another type of penalty event to consider and this article looks at whether it leaves our clients in a worse or better off position.

The consultation

On 19 December 2006 HMRC published proposals for a new penalty regime for incorrect tax returns. This covers income and corporation tax PAYE National Insurance and VAT; i.e. areas which all tax practitioners regularly come across.
The full details are set out in a consultation document with the less than snappy title of: 'Modernising Powers Deterrents and Safeguards: A new approach to penalties for incorrect tax'. It is on the HMRC website at www.hmrc.gov.uk and runs to 76 pages in length...

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