CH81150 - Types of inaccuracy: Deliberate but not concealed 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.

A deliberate inaccuracy occurs when a person knowingly and intentionally gives HMRC an inaccurate document. Giving a document is explained at CH81050.

Examples of actions that might lead to a deliberate inaccuracy in a document include

• systematically paying wages without accounting for operating PAYE or NIC
• knowingly failing to record all sales, especially where there is a pattern to the under- recording, such as omitting all transactions with a particular customer or at a particular time of the week, month or year
• deliberately describing transactions inaccurately or in a way likely to mislead
• giving a VAT return to HMRC that includes a figure of net VAT due that is too low because the person does not have the cash at that time to pay the full amount, and later telling HMRC the true figure when he has the funds to pay
• claiming a deduction for personal expenses of such a size or frequency that the inaccuracy must have been known
• deliberately withdrawing money for personal use from an incorporated business and not making any attempt to make sure it is treated correctly for tax purposes.

Although the penalties for deliberate inaccuracies are civil monetary penalties, we also have a criminal investigation policy and will refer the most serious cases for consideration of criminal proceedings where appropriate.

For practical examples of deliberate but not concealed inaccuracies, see CH81151.