CH81012 - Penalties for Inaccuracies: In what circumstances is a penalty payable: Commencement date - Part 1
Income Tax, Capital Gains Tax, Corporation Tax, PAYE, Class 1 and Class 4 NICs, Construction Industry Scheme, VAT
There are different commencement dates for penalties under
Penalties under Paragraphs 1 and 2
This is the normal rule for the commencement date for penalties under paragraphs 1 and 2 but there are exceptions. The penalties for
- inaccuracies in returns or other documents (FA07/SCH24/PARA1), and
- failing to notify HMRC of an under-assessment to tax (FA07/SCH24/PARA2)
apply where
- the inaccuracy is contained in (or the under-assessment relates to) a return or other document which is due to be filed on or after 1 April 2009, and
- the return or other document (or under-assessment) relates to a tax period beginning on or after 1 April 2008.
Exceptions to the normal rule
- The documents in the following situations either relate to a
different tax period to that in the normal rule, or must carry a
specific date. In all cases the filing date for the return or
document must be on or after
1 April 2009. Documents relating to
- claims under the Thirteenth Council Directive (arrangements for the refund of VAT to persons not established in Community territory) must be for years commencing on or after 1 July 2008.
- claims under the Eighth Council Directive (arrangements for the refund of VAT to taxable persons not established in the territory of the country) must be for years commencing on or after 1 January 2009.
- all other claims for repayments of tax made on or after 1 April 2009 which are not related to a tax period, must be dated on or after 1 April 2009.
- any other case where the person’s liability to pay relevant tax arises on or after 1 April 2009, must be dated on or after 1 April 2009.
- Where the inaccuracy relates to
- a corporation tax credit, see CH81071, or
- a return by the Administrator of a Registered Pension Scheme
the penalty provisions apply where
- the inaccuracy is contained in (or the under-assessment relates to) a return or other document which is due to be filed on or after 1 April 2010, and
- the return or other document (or under-assessment) relates to a tax period beginning on or after 1 April 2009.
- The penalties under FA07/SCH24/PARA1
do not apply to inaccuracies in form P11D(b)
– return of Class 1A National Insurance Contributions.
Penalties for incorrect forms P11D(b) are due under Regulations 81(1) Social Security (Contributions) Regulations 2001, see ECH21041.
Penalties under Paragraph 1A
The penalty for deliberately supplying false information to, or deliberately withholding information from, a person with the intention of making that person’s document inaccurate (FA07/SCH24/PARA1A) applies where
- the inaccuracy is contained in a return or other document which is due to be filed on or after 1 April 2010, and
- the return or other document relates to a tax period beginning on or after 1 April2009.
