Penalties
to allocate the correct tax code which is then submitted via the FPS.
P60 - End of Year Certificate A P60 statement is the document issued to each employee (and to those on pension payrolls from 6th April 1996) employed at 5th April each year, giving details of final pay and tax accumulations for the tax year. It can be provided on paper or electronically (only on paper pre- tax year 2010/11) using the form supplied, or a substitute document approved by HMRC. Prior to 6th April 2003 no duplicate or copy of the initial document could be provided. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS PENALTIES Incorrect tax returns HMRC took a new approach to penalties in respect of return periods beginning on or after 1st April 2008 where the return is due to be filed on or after 1st April 2009. The penalty regime applies to all taxes including PAYE. Previously a penalty could be levied of up to 100% of the tax understated or over-claimed as a result of negligent or fraudulent conduct. The penalties could then be reduced by up to 20% for disclosure, 40% for co-operation and 40% for seriousness, with a further 10% where disclosure was not prompted by HMRC. For return periods after 1st April 2008 the new approach commences with: • the filing of an incorrect tax return where the inaccuracy was careless or deliberate, or • failure upon receiving an understated tax assessment to notify HMRC within 30 days. Inaccuracy may be defined in four ways, whether inaccuracy was: • made despite reasonable care having been taken - no penalty thereby being incurred • a result of failure to take reasonable care or carelessness • a deliberate error not concealed • a deliberate error which was concealed. Maximum penalties may be reduced where voluntary disclosure has taken place. Such disclosure should include details as to: • who was involved • who was aware of the inaccuracy • for how long the inaccuracy had taken place • the scale of the inaccuracy. No printing, copying or reproduction permitted. The maximum penalties that may be imposed are: • 30% - for careless behaviour • 70% - for a deliberate but not concealed error • 100% - for a deliberate and concealed error.
115
Made with FlippingBook - Online magazine maker