HMRC Introduces New Penalty Regime

May 7th 2008

Following consultation with taxpayers, HMRC are introducing new legislation regarding penalties for errors on tax returns and supporting documents.  The new legislation aims to help those who try to comply, and come down hard on those who don’t.  In line with efforts to make the tax system simpler and more consistent, the new penalty regime, for return periods starting on or after 1 April 2008 that are due to be filed on or after 1 April 2009, will ensure that the most serious tax offences are punished most heavily.

Readers will be aware of the current regime where there is little difference between the penalty for a simple error, classed as negligence and one for serious attempted tax fraud.  It is hoped that this new legislation will introduce a much fairer penalty system.