On 1 April 2009 HMRC brought into effect new legislation in respect of penalties for tax offences. This legislation had been enacted in Finance Act 2007. The new rules apply to any return submitted to HMRC after 1 April 2009, in respect of a period which commenced on or after 1 April 2008. The rules therefore cover the 2008/09 personal tax returns, and PAYE year end returns as well as corporation tax and VAT returns that are submitted after that date.

The rules will not yet apply to the wider range of taxes such as inheritance tax and stamp duty land tax. The new penalty powers in respect of those taxes will be introduced from April 2010.

For details of how the new penalty system will work, what will trigger a penalty, how a penalty will be levied, how a penalty can be reduced and the procedure for assessing a penalty please click here for the full article.

For further information please contact us.