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Issue:
4881
/
Categories:
Comment & Analysis
, Compliance Handbook
, HMRC
, penalties
, reasonable care
, Avoidance
, Compliance
, Policy
Careless behavioural penalties
Key points
- Behavioural penalties are charged in relation to inaccuracies when an error is discovered in a return.
- Careless behaviour has a wide definition and sits between reasonable care and deliberate in the eyes of HMRC.
- Penalties vary for onshore and offshore matters.
- Penalties can be mitigated based on three criteria: telling; helping; and giving HMRC access to records.
Careless penalties are applied when a taxpayer failed to take reasonable care to get things right. At the end of an HMRC enquiry where errors were found the taxpayer and HMRC must agree the penalty position. Anyone outside the tax profession may think agreeing the penalty position is a simple formality. For those in the profession we know it is anything but.
What are behavioural penalties?
Behavioural penalties are charged in relation to inaccuracies when an error is discovered in a return or document submitted to HMRC.
There...
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