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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
, see all updates

How to do a compliance check: compliance check series of factsheets: when to issue CC/FS7a penalties for inaccuracies in returns and documents

Factsheet CC/FS7a tells the person:

  • when we may and may not charge a penalty for an inaccuracy in a return or document
  • what they can do to reduce any penalties we may charge
  • what happens if they have deliberately done something wrong
  • how we work out the amount of a penalty
  • how we can suspend a penalty
  • about their rights.

You must give the person factsheet CC/FS7a as soon as you have established that:

  • the return or document you are checking contains an inaccuracy and
  • the inaccuracy may result in potential lost revenue.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Do not issue factsheet CC/FS7a where the only inaccuracies you have established are ones that result in an overpayment of tax. However, if you identify further inaccuracies later in the check that do not result in an overpayment of tax, you must issue factsheet CC/FS7a.

If you are in a meeting you must give the person time to read factsheet CC/FS7a and make sure they are fully aware of the potential reductions for telling, helping and giving. You must also tell the person about the benefits of making an unprompted disclosure of anything else that they know is wrong.

If you issue factsheet CC/FS7a by post you must draw the person’s attention to the benefits of helping us with our check.

If you are issuing factsheet CC/FS7a you must also issue factsheet CC/FS9 The Human Rights Act and penalties, following the guidance at CH202275.

Penalties for inaccuracies are explained fully in CH80000.