CH81001 – In what circumstances is a penalty payable: Introduction to penalties for inaccuracies

This guidance applies to returns and documents with a filing date on or after 1 April 2009 where the return covers a tax period beginning on or after 1 April 2008 seeCH81011for full details.

HMRC is responsible for making sure that everyone pays the right amount of tax. Most people do pay the right tax at the right time and take care with the documents they submit. People expect reassurance from HMRC that there is no advantage to those who do not.

To provide this assurance HMRC will charge penalties where people do not

• pay the right tax at the right time, and
• take care with the documents they submit.

There are different circumstances under which HMRC may issue a penalty assessment. This guidance relates specifically to when a person has failed to take reasonable care, and carelessly or deliberately

• understates the tax they owe
• chooses to misrepresent their liability
• overstates a claim, or
• does not tell us when they have been under–assessed.

The guidance will help you

• determine when a penalty for inaccuracy or failure to notify an under-assessment, is payable, see CH81010
• identify the types of inaccuracies, see CH81100
• calculate the penalty due, see CH82000
• process the penalty, see CH83000, and
• deal with appeals against a penalty, see CH84000.

There is also guidance on miscellaneous issues that may affect the penalty, see CH84500.