CH81110 – Types of inaccuracy: The four types of inaccuracy

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.

There are four types of inaccuracy.

An inaccuracy made by a person in a document may be

• made despite the person taking reasonable care, see CH81120, in which case no penalty will be due, see CH81130, or
• careless if the inaccuracy is due to a failure to take reasonable care, see CH81140, or
• deliberate but not concealed if the inaccuracy is deliberate but no arrangements were made to conceal it, see CH81150, or
• deliberate and concealed if the inaccuracy is deliberate and arrangements were made to conceal it, see CH81160.

Penalties for inaccuracies are designed to address the behaviour that led to the inaccuracy. Not every inaccuracy will result in a penalty and penalties for deliberate inaccuracies will be higher than those for careless inaccuracies.

Within the deliberate category the law provides for higher penalties in the most serious cases where the person has taken steps to conceal the deliberate inaccuracy.