The following Employment Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
HMRC can issue ‘follower notices’ requiring taxpayers to ‘take corrective action’, ie amend their returns / claims or drop their appeals where both of the following conditions are satisfied:
FA 2014, ss 204-205
The penalties for failing to take corrective action following receipt of a notice can be as much as 50% of the tax and / or NIC at stake and will apply in addition to any other penalties due up to a maximum of 200% of the tax (higher maximum percentages apply where an offshore matter is involved). For more on offshore matters, see the Penalties for offshore matters guidance note (subscription sensitive).
The taxpayer must decide whether he should either:
If the taxpayer takes the second option he will have to pay not only the tax but also a penalty of up to 100% of the tax (higher if there is an offshore element involved) if he:
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