Suspended penalties

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Simon Sweetman explains HMRC’s new powers to suspend a penalty and discusses the implications for taxpayers and agents.

One of the more interesting aspects of the new powers given to HMRC is the ability to suspend a penalty. Paragraph 14, Schedule 24 FA 2007 says that HMRC may suspend all or part of a penalty for a careless inaccuracy under paragraph 1 by notice in writing to the taxpayer (referred to as P).

However, they may only do this if compliance with a condition of suspension would help P to avoid becoming liable to further penalties under paragraph 1 for careless inaccuracy. This notice can specify action to be taken and a period within which it must be taken.

At the end of that period, if HMRC is satisfied that the conditions of suspension have been complied with, the...

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Simon Sweetman
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25th Aug 2009 20:04

Merry go round
Still not bottomed out the penalty for SATR submitted mid Jan this year (nil tax, too) - there should be a refund for incorrect HMRC penalties !

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