New compliance checks - fact sheets
HM Revenue & Customs (HMRC) have published a series of fact sheets to help customers understand the new framework for compliance checks.
The fact sheets will help customers understand the measures brought in by Finance Act 2008 (FA08) and how these will change the way HMRC officers check the tax position of individuals, companies and VAT registered bodies.
CC/FS1 Compliance checks - general information (PDF 66K)
CC/FS2 Compliance checks - requests for information and documents (PDF 69K)
CC/FS3 Compliance checks - visits - pre-arranged (PDF 58K)
CC/FS4 Compliance checks - visits - unannounced (PDF 59K)
CC/FS5 Compliance checks - visits - unannounced - tribunal approved (PDF 61K)
CC/FS6 Compliance Checks - What happens when we find something Wrong (PDF 72K)
CC/FS7 Compliance checks - Information about penalties (PDF 53K)
CC/FS8T Compliance Checks - Help and advice (PDF 37K)
CC/FS9 Compliance Checks - Human Rights Act Factsheet (PDF 58K)
CC/FS10 Compliance Checks - Suspending penalties for careless errors (PDF 42K)
The new compliance checks
The new compliance checks legislation is one of the first pieces of cross cutting legislation designed to make the tax system simpler and more consistent.
From 1 April HMRC will have one set of powers covering PAYE, VAT, Income Tax, Capital Gains Tax, Corporation Tax and Construction Industry Scheme to:
- visit business premises to inspect the premises, assets and records (Schedule 36, Finance Act 2008)
- ask tax payers and third parties for information and documents (Schedule 36 FA08)
The new measures will also provide:
- greater flexibility in setting record keeping requirements after 1 April 2009 (Schedule 37 FA08)
- new time limits for assessment and claims, which will not be fully in force until April 2010 but there will be some transitional arrangements from 1 April 2009 (Schedule 39 FA08)
- important safeguards for customers
Take care to avoid a penalty
The new penalty system for inaccuracies in tax returns and other tax documents is another piece of cross cutting legislation designed to make the tax system simpler and more consistent. It replaces a wide variety of existing penalties for inaccuracies.
Under the new system if you take reasonable care to get your tax right,
we will not penalise you, even if you make a mistake.
Most people take care to fill in their tax returns correctly and we want to
encourage that. We use penalties to stop people who don’t take care
from gaining an unfair advantage.
The new inaccuracy penalty applies to:
- Capital Gains Tax
- Construction Industry Scheme
- Corporation Tax
- Income Tax
- NICs (but not Class 1A NICs)
- PAYE
- VAT
for a return or document which is due to be filed on or after 1 April 2009, and the return, document or under-assessment relates to a tax period beginning on or after 1 April 2008.
More information
More fact sheets about the new Compliance Checks will be issued in due course.
If you have a query on Compliance Checks which is not covered in the fact sheets or by the Frequently Asked Questions please email the Compliance Checks Team.
If you have a query about taking care to avoid a penalty which is not covered in the fact sheets or by the briefing on new penalties please email the New Penalties Team
Read about Self Assessment checks into your tax return
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