HMRC has updated its soft drinks industry levy penalties guidance. The revised guidance notes that HMRC may charge a penalty where a return or other document contains an inaccuracy and that inaccuracy results in tax being unpaid, understated, or overclaimed, and where the inaccuracy was careless, deliberate, or deliberate and concealed.
The penalty will be calculated as a percentage of the additional amount of levy that is due as a result of correcting the inaccuracy (the ‘potential lost revenue’). HMRC will take into account the reasons for the failure and any voluntary disclosure of the inaccuracy. Where the failure was not deliberate and reasonable care was taken, no penalty will be charged.
The revised guidance is in line with HMRC Compliance Checks Factsheet CC/FS7a Penalties for inaccuracies in returns and documents which covers the penalties in FA 2007 Sch 24 and provides a helpful table setting out which taxes are in scope and the dates from which the provisions apply.
HMRC has updated its soft drinks industry levy penalties guidance. The revised guidance notes that HMRC may charge a penalty where a return or other document contains an inaccuracy and that inaccuracy results in tax being unpaid, understated, or overclaimed, and where the inaccuracy was careless, deliberate, or deliberate and concealed.
The penalty will be calculated as a percentage of the additional amount of levy that is due as a result of correcting the inaccuracy (the ‘potential lost revenue’). HMRC will take into account the reasons for the failure and any voluntary disclosure of the inaccuracy. Where the failure was not deliberate and reasonable care was taken, no penalty will be charged.
The revised guidance is in line with HMRC Compliance Checks Factsheet CC/FS7a Penalties for inaccuracies in returns and documents which covers the penalties in FA 2007 Sch 24 and provides a helpful table setting out which taxes are in scope and the dates from which the provisions apply.
