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HMRC have announced a move to make the UK tax system simpler and more consistent.
A new piece of cross-cutting tax legislation has introduced penalties that 'aim to help those who try to comply, and come down hard on those who don't'.
The new penalties are initially for errors on returns and documents for:
- VAT
- PAYE
- National Insurance
- Capital gains tax
- Income tax,
- Corporation tax
- Construction industry scheme
The penalty regime will apply to returns and other forms for return periods starting on or after 1 April 2008, which are due to be filed on or after 1 April 2009.
They follow consultation with taxpayers during the Revenue's Powers Review, and are designed so that people who take reasonable care when completing their returns will not be penalised.
However, those who do not take reasonable care errors will be penalised, and the penalties will be higher if the error is deliberate.
Disclosing errors to HMRC early will substantially reduce any penalty due.
The Revenue said: 'Most people take reasonable care to get their tax right, but it's important that all our customers do this, or they may incur a penalty for errors made during 2008-09 and later years.
'The 2008 Finance Bill will extend the new penalties for incorrect returns across most of our taxes, levies and duties, for incorrect returns for periods commencing from 1 April 2009, where the return is due to be filed from 1 April 2010.'
More information is provided by a guide on the HMRC website.
