When HMRC were formed in 2005, they inherited a vast patchwork of penalty provisions relating to the various taxes previously administered by the Inland Revenue and Customs & Excise.
In 2007 they embarked on a programme to establish a unified system of penalties across the tax system. The main pillars of this system are penalties for:
- Inaccuracy in a document (Schedule 24, FA 2007)
- Failure to notify HMRC of a liability (Schedule 42, FA 2008)
- Failure to make a return on time (Schedule 55, FA 2009)
- Failure to pay on time (Schedule 56, FA 2009)
The provisions on inaccuracy in a document establish...