Something that I seem to be asked quite a lot is about what penalties people are likely to suffer for issues related to their tax.
Hope that this short but handy note helps you and your clients ake the right choices.
The percentages given are the potential lost revenue by HMRC.
Deliderate and concealed :
Maximum penalty 100%
Minimum Penalty for unprompted disclosure 30%
Minimum Penalty resulting for Prompted disclosure 50%
Deliberate but not concealed :
Maximum penalty 70%
Minimum Penalty for unprompted disclosure 20%
Minimum Penalty resulting for Prompted disclosure 35%
All Other Cases :
Maximum penalty 30%
Minimum Penalty for unprompted disclosure where >= 12m 10%
Minimum Penalty for unprompted disclosure where < 12m 0%
Minimum Penalty resulting for Prompted disclosure where >= 12m 20%
Minimum Penalty resulting for Prompted disclosure where < 12m 10%
Hope that this knowledge helps your clients to make the right choices,
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
return more than 3 months late - £10 per day for a maximum of 90 days
Return more than six months late - 5% of tax due + £300
Return more than 12 months late _
100% of tax due for deliberate concealment
70% of tax due for deliberate but not concealed
5% of tax due for all other cases
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Minimum Penalty for unprompted disclosure 30% of potential lost revenue
Minimum Penalty resulting for Prompted disclosure 50% of potential lost revenue
Deliberate but not concealed :
Maximum penalty 70% of potential lost revenue
Minimum Penalty for unprompted disclosure 20% of potential lost revenue
Minimum Penalty resulting for Prompted disclosure 35% of potential lost revenue
All Other Cases :
Maximum penalty 30% of potential lost revenue
Minimum Penalty for unprompted disclosure 0%
Minimum Penalty resulting for Prompted disclosure 15% of potential lost revenue
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
General rule : 4 years from the end of the tax year in question
Extensions :
Extend time limit to 6 years for suspected careless understatement
Extend time limit to 20 years for suspected deliberate understatement
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
