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HMRC internal manual

Compliance Operational Guidance

From
HM Revenue & Customs
Updated
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Supporting Guidance: employer compliance: guidance by subject: computations: interest and penalties for estimates

If an estimated computation is used COG908090, interest can be charged on the amounts included in the settlement, provided the employer or contractor has agreed them. However, see also COG908150.

Similarly, where estimates are used you should

  • make sufficient extracts of specific omissions to demonstrate that incorrect returns have been made, and
  • question the employer or contractor to demonstrate that the returns were made fraudulently or negligently (for returns pre April 2008)
  • question the employer or contractor to demonstrate that the returns were incorrect deliberately or carelessly (for returns post April 2008).