If a lack of reasonable care is being alleged, it is essential to understand the taxpayer’s mindset when the mistake was made, as well as any steps the taxpayer took to file their return correctly, writes Claire Miles (Willkie Farr & Gallagher).
Taxpayers are expected to take reasonable care over their tax affairs. HMRC tells us that it does not expect perfection (see HMRC’s Compliance Handbook at CH53400) which is reassuring as we are all navigating an increasingly complex tax code. The required standard varies among taxpayers depending on their abilities and circumstances (CH81120). This article focuses on the standards expected from individual taxpayers particularly those who have made a mistake in a complex area of law.
Discovery
In the most normal of circumstances HMRC may raise an enquiry into an individual’s tax return within 12 months of the return’s filing date. However where certain...
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If a lack of reasonable care is being alleged, it is essential to understand the taxpayer’s mindset when the mistake was made, as well as any steps the taxpayer took to file their return correctly, writes Claire Miles (Willkie Farr & Gallagher).
Taxpayers are expected to take reasonable care over their tax affairs. HMRC tells us that it does not expect perfection (see HMRC’s Compliance Handbook at CH53400) which is reassuring as we are all navigating an increasingly complex tax code. The required standard varies among taxpayers depending on their abilities and circumstances (CH81120). This article focuses on the standards expected from individual taxpayers particularly those who have made a mistake in a complex area of law.
Discovery
In the most normal of circumstances HMRC may raise an enquiry into an individual’s tax return within 12 months of the return’s filing date. However where certain...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
