HMRC has introduced legislation to standardise powers, deterrents and safeguards across the UK tax regime. Readers will be aware that these changes follow consultation with agents, customers, representative bodies, and staff. Over time they are intended to make the tax system more consistent.
Every year HMRC carries out compliance checks to see if the correct tax has been paid. From 1 April 2010 there will be one system across many taxes:
- to obtain information about tax;
- to inspect business records;
- to determine the time taken to make tax claims;
- to determine the time HMRC have to make tax assessments.
New penalties have also been introduced with effect from 1 April 2010. The penalties include:
- an inaccuracy penalty for inaccurate tax documents and returns across most taxes;
- a failure to notify penalty across most taxes when;
- people don't tell HMRC about a relevant obligation at the correct time, e.g. to register for a tax;
- a new VAT and Excise wrongdoing penalty Publishing details of deliberate defaulters.
Readers will be aware that from 1 April 2010 HMRC can publish the details of taxpayers who are penalised for deliberately evading more than £25,000 of tax.
With regard to PAYE/National Insurance Contributions (NICs), from 6 April 2010 new penalties will apply to all employers who do not pay PAYE, NICs, Construction Industry Scheme deductions and student loan deductions on time and in full. The new penalties replace an existing penalty under the Mandatory Electronic Payment (MEP) scheme, which affected employers with 250 or more employees.
Taxpayers who disagree with the imposition of a penalty by HMRC can appeal.
Further information is available from HMRC website which can be accessed here.