Civil penalties

V5.334 Mitigation of penalties


HMRC or, on appeal, a tribunal, may reduce a penalty in respect of any of the following defaults to whatever amount (including nil) they think proper1


    (1)     tax evasion: conduct involving dishonesty2;


    (2)     failure to notify and unauthorised issue of invoices3;


    (3)     breach of record-keeping requirements in relation to transactions in gold4; and


    (4)     (from a date to be appointed) penalties for transactions connected with VAT fraud5;


    (5)     failure to disclose avoidance schemes6.

For the reduction provisions in relation to penalties for the failure to make payment/submit returns on time (to be introduced from a date to be appointed), see V5.382, V5.383.

In mitigating/reducing a penalty, neither HMRC nor the tribunal may take into account7


    (a)     insufficiency of funds

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