HMRC internal manual

Compliance Handbook

Penalties for Inaccuracies: In what circumstances is a penalty payable: Commencement date for FA 2007 penalties

You should check the other guidance available on GOV.UK from HMRC as Brexit updates to those pages are being prioritised before manuals.

Section 97 and Schedule 24 FA 2007 introduce the penalty regime for

  • inaccuracies in returns or other documents (FA07SCH24/PARA1),
  • deliberately supplying false information to, or deliberately withholding information from, a person with the intention of making that person’s document inaccurate (FA07/SCH24/PARA1A), and
  • failing to notify HMRC of an under-assessment to tax (FA07/SCH24/PARA2).

These financial penalties are graduated and the amount of penalty for each inaccuracy is related to the behaviour that led to the inaccuracy. The more serious the behaviour the higher the penalty will be, see CH81110.

The penalties apply across all taxes and duties but the commencement date differs. Select the appropriate tax for full information.

CH81012 contains full information for Income Tax, Capital Gains Tax, Corporation Tax, PAYE, Class 1, Class 1A and Class 4 NICs, Construction Industry Scheme and VAT.

CH81013 contains full information for Bank Payroll Tax, Insurance Premium Tax, Inheritance Tax, Stamp Duty Land Tax, Stamp Duty Reserve Tax, Petroleum Revenue Tax, Excise Duties including Aggregates Levy, Climate Change Levy, Landfill Tax, Air Passenger Duty, Alcoholic Liquor Duties, Tobacco Product Duty, Hydrocarbon Oil Duties, Bingo Duty, Lottery Duty, Gaming Duty, Warehouse Keepers, Registered Excise Dealers and Shippers.

CH81014 contains full information for Machine Gaming Duty, Annual Tax on Enveloped Dwellings and careless inaccuracies relating to avoidance arrangements.