Consumers and businesses warned of tax changes - Economy - News - Moneyfacts


Consumers and businesses warned of tax changes

Consumers and businesses warned of tax changes

Category: Economy

Updated: 31/03/2010
First Published: 31/03/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Consumers and businesses have been urged to make themselves aware of new tax penalties and changes that are to be introduced from tomorrow.

The alterations will cover three areas, specifically:

The first is a failure to notify penalty, which will see a single consistent penalty system introduced for people and companies that fail to register for tax or declarable tax income.

In addition, an inaccuracy penalty, which was first unveiled last April across the main taxes for inaccurate tax documents and returns, is being extended over almost all other taxes.

Under the system, people who take insufficient care to pay the right amount of tax will face a penalty, with a maximum rate of 100 per cent of the value of taxes evaded. However, consumers that can show they took reasonable care to pay will not be penalised.

This can be proved by keeping accurate tax records and checking what the correct position is when something is not understood.

Finally, consumers and businesses are also being made aware of compliance checks. The system is being extended to include Inheritance Tax, Stamp Duty Land Tax and Stamp Duty Reserve Tax.

"These changes underpin our drive to improve tax compliance in the UK," said Dave Hartnett, HMRC Permanent Secretary for Tax.

"They are carefully constructed to support and encourage those who make a genuine effort to get their tax right, while coming down hard on those who don't."

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