11th July 2024
HMRC penalties can be a stressful surprise for any taxpayer. Understanding how they work can make a big difference. This guide will explain how your behavior towards HMRC can significantly impact the size of a potential penalty. By following some key steps, you can minimize the financial burden and ensure a smoother resolution with HMRC.
Fixed vs. Tax-Geared Penalties:
Negotiating Penalties? Not Exactly.
HMRC considers your taxpayer behavior. Here’s how it impacts your penalty:
What HMRC Looks For:
The Bottom Line:
Behaviour | Unprompted Disclosure | Prompted Disclosure |
Reasonable Care | No penalty | No penalty |
Careless | 0-30% | 15-30% |
Deliberate | 20-70% | 35-70% |
Deliberate & Concealed | 30-100% | 50-100% |
Avoiding Trouble:
Minimizing Penalty Costs:
Need Help?
Contact us to discuss your situation and explore options for minimizing your penalty.
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