Kent Solicitors

There is a new penalty system for incorrect returns for VAT, PAYE, national insurance, capital gains tax, income tax, corporation tax and the construction industry scheme.

It was introduced to try to make the system consistent across the various taxes.

If people take reasonable care when completing their returns, they should not be penalized but penalties will be high, if the error is deliberate

A penalty can only be charged if the taxpayer carelessly or deliberately supplies a document containing an inaccuracy that leads to an understatement of the persons liability to tax, an inflated statement of a loss, or a false or inflated claim to repayment of tax

A penalty may also be charged where the tax payer ahs filed no returns and HMRC issue an assessment which is insufficient

Michael Breeze, Kaslers Solicitors LLP 07 900 195 195 http://www.kentsolicitor.co.uk/

Labels: CGT, Construction Industry, NI, PAYE, penalties, Tax, VAT