The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides details of how a penalty for an inaccurate document is calculated and collected by HMRC. This note should be read in conjunction with the Overview of the three penalties introduced from 1 April 2010, Penalties for inaccuracies ― overview, Penalties for inaccuracies ― assessing the penalty and Penalties for inaccuracy ― agents and officers guidance notes.
HMRC will need to ascertain the following information before it can issue a penalty for an inaccuracy:
It is important to note that HMRC should advise the person that they may be liable to a penalty as soon as they become aware that it is likely even if it has not established all of the facts surrounding the case including how serious the person’s behaviour is. If HMRC advised the person during a conversation then it is important that it issues a follow up letter providing details of why it considers that a penalty is due. HMRC is required to adhere to the requirements laid down in the Human Rights Act when imposing a penalty.
HMRC will normally use the following as the basis for calculating the PLR in respect of a single inaccuracy.
The PLR is the additional amount due or payable
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