Readers are reminded about three key areas where HMRC’s powers have changed from 1 April 2010.
First, a single consistent penalty system will apply across most taxes where people and companies fail to register for tax or declare taxable income.
Second, the inaccuracy penalty, introduced last April across the main taxes for inaccurate tax documents and returns, is being extended to almost all other taxes.
Finally, the compliance checks legislation, which came in last April for most direct taxes, is being extended to include: aggregate levies; climate change levies; inheritance tax; insurance premium tax; landfill tax; petroleum revenue tax; stamp duty land tax; and stamp duty reserve tax.
In addition, from 6 April 2010, there are new penalties for employers and contractors who do not pay PAYE, National Insurance contributions, construction industry scheme deductions and student loan deductions on time and in full.
