HMRC review of powers, deterrents and safeguards

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The Chancellor will introduce legislation in Finance Bill 2008 to create a single penalty regime for incorrect returns across all the taxes, levies and duties administered by HM Revenue & Customs (HMRC). The penalty will be determined by the amount of tax understated, the nature of the behaviour giving rise to the understatement and the extent of disclosure by the taxpayer. The use of suspended penalties will be extended.
Provision will be made to extend and adapt Schedule 24 FA2007 to cover penalties for failing to register or notify HMRC of a new taxable activity across all the taxes, levies and duties administered by HMRC, including late VAT registration.
From 1 April 2009, rules for checking that businesses and individuals have paid the correct amount of IT, CGT, CT, VAT and PAYE or claimed the correct reliefs and allowances will be reformed. There will be three elements:
1. alignment and modernisation of record keeping requirements;
2. new inspection and information powers; and
3. alignment and modernisation of time limits for making tax assessments and claims.
From autumn 2008, individuals and businesses will be able to pay tax and duties by credit card.
From April 2009, the appeals process for decisions made by HMRC will be simplified.

Contacts

John Whiting

+44 (0) 20 7804 4422

Budget media hotline

+44 (0) 20 7804 6924

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