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Article Date:	02/04/2008
Article Title:	New penalties for errors on tax returns
HMRC is introducing new penalties, which aim to 'help those who try to comply, and come down hard on those who don’t.' The new penalties will operate so: If people take reasonable care when completing their returns they will not be penalised. If they do not take reasonable care errors will be penalised, and the penalties will be higher if the error is deliberate. Disclosing errors to HMRC early will substantially reduce any penalty due. The new penalty regime will operate for tax years from 2008/09 onwards. They are initially for errors on returns and documents for VAT, PAYE, National Insurance, Capital Gains Tax, Income Tax, Corporation Tax and the Construction Industry Scheme. For these taxes, the penalties apply to returns or other documents for return periods starting on or after 1 April 2008 that are due to be filed on or after 1 April 2009. Further information www.hmrc.gov.uk/about/new-penalties/index.htm