The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of how the penalties for inaccuracies will apply to agents and officers. 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 - calculating the penalty and Penalties for inaccuracies - assessing the penalty guidance notes.
When considering whether to impose a penalty on a business who has engaged the services of another party to act as their ‘agent’ or ‘someone acting on a person’s behalf’, HMRC will consider the actions of the party:
The following could be viewed as acting on behalf of the business in respect of their tax affairs.
An employee, whether of a company, partnership or individual, is generally considered to be acting as a servant of the business and not as their agent. However if an employer submitted an inaccurate return as a result of the action or inaction of an employee, the following may apply:
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