New proposals spelled out by HM Revenue & Customs (HMRC) could see taxpayers penalised more heavily for filing their tax returns incorrectly.
As part of a consultation held last month, HMRC issued a document detailing how it can update its deterrents and safeguards in the wake of the merger between the Inland Revenue service and Customs and Excise.
The changes, which build on an earlier consultation held last March, include introducing a single penalty structure that will apply to incorrect returns for income tax, corporation tax, PAYE, national insurance and VAT.
There will also be no penalties for those who have taken "reasonable care" to ensure their return is filed correctly but who nevertheless understate their tax liability by mistake, and a moderate penalty for those that don't take such care.
Higher penalties will apply to those who deliberately understate their liabilities, and cover-ups will incur a higher penalty still.
Reductions will be available to those taxpayers who aid HMRC in its tax calculations.
Meanwhile, the government is urging Britons to file their tax returns online in a bid to save time and reduce the number of late deliveries.
© Adfero Ltd
