Revenue & Customs Brief 15/11 explains that HMRC have changed their approach to the operation of the FA 2007 Sch 24 para 8 ‘delayed tax’ provision.
Revenue & Customs Brief 15/11 explains that HMRC have changed their approach to the operation of the FA 2007 Sch 24 para 8 ‘delayed tax’ provision.
‘If a return contains an inaccuracy that relates to a timing error which is automatically reversed in a subsequent tax period, the penalty is not calculated on the full amount of tax underpaid in the first period, but on a reduced amount to take account of the timing error,’ HMRC said.
In some cases HMRC have charged a penalty on the full amount because they acted to correct the inaccuracy on the first return before the second return could be submitted.
Under the new approach, the reduced amount will apply if HMRC are satisfied that ‘but for their intervention, the inaccuracy would have been automatically corrected in a subsequent return’.
Revenue & Customs Brief 15/11 explains that HMRC have changed their approach to the operation of the FA 2007 Sch 24 para 8 ‘delayed tax’ provision.
Revenue & Customs Brief 15/11 explains that HMRC have changed their approach to the operation of the FA 2007 Sch 24 para 8 ‘delayed tax’ provision.
‘If a return contains an inaccuracy that relates to a timing error which is automatically reversed in a subsequent tax period, the penalty is not calculated on the full amount of tax underpaid in the first period, but on a reduced amount to take account of the timing error,’ HMRC said.
In some cases HMRC have charged a penalty on the full amount because they acted to correct the inaccuracy on the first return before the second return could be submitted.
Under the new approach, the reduced amount will apply if HMRC are satisfied that ‘but for their intervention, the inaccuracy would have been automatically corrected in a subsequent return’.
