The following Employment Tax guidance note by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:
The penalty regime in FA 2007, Sch 24 provides that there is no penalty where an inaccuracy leading to an underpayment of tax is made on a return or other document, provided the person took reasonable care. There is no statutory definition of reasonable care, so reliance must be placed on the guidance in the HMRC manuals and case law.
For a general overview of the penalty regime, see the Penalty rates and structure for inaccuracies in returns, Calculating the penalty for inaccuracies in returns - behaviour of the taxpayer and Calculating the penalty for inaccuracies - potential lost revenue guidance notes.
Reasonable care will vary depending on the capabilities and circumstances of the taxpayer and the complexity of the issues affecting them. Therefore, the following are likely to be taken into account:
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login