The following Corporation Tax guidance note by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:
Under the penalty legislation introduced by FA 2008, Sch 41, where a failure to notify has occurred, the taxpayer is exposed to a penalty.
The rate of the penalty is based on the behaviour of the person and whether the disclosure of an error has been prompted or unprompted. This rate is then applied to the potential lost revenue (PLR), which is the amount of tax outstanding at a particular date. This discussed in detail in the Penalties for failure to notify guidance note.
The rate of penalty can be reduced if the taxpayer comes forward to inform HMRC about the failure to notify and it can be reduced further by the nature and quality of the information and documentation provided to HMRC. This is known as the quality of disclosure and is discussed in this guidance note.
A penalty for failure to notify can be completely reduced where a taxpayer has a reasonable excuse. See the Reasonable excuse - failure to notify guidance note.
The first thing to consider is whether the disclosure is:
A disclosure must fall into one of these categories. There is both a smaller range of potential penalties and a lower highest possible penalty for voluntary disclosures. This is designed to encourage disclosure and compliance. The penalties are higher the longer the failure goes on.
Therefore the range of penalties for a non-deliberate failure is 0-30% for an
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