Can an inaccuracy penalty be suspended?
Suspension is a new concept. Its purpose is to support those who take positive action to avoid further inaccuracies in the future. HMRC can only consider suspension if the penalty is a result of a failure to take reasonable care, it cannot be suspended if the penalty results from a deliberate inaccuracy. If suspension is appropriate, HMRC will agree and set suspension conditions. If you meet the conditions, the penalty is cancelled. If you do not meet the conditions, you will have to pay the penalty. The period of suspension can be up to two years. For example, if a careless inaccuracy is due to poor record keeping, one of the conditions of suspension could be that the person makes specified improvements to the way they keep their records. This will help the person avoid future inaccuracies. When considering if suspension is appropriate, before deciding whether to suspend the penalty, HMRCl consider: • what general behaviours towards compliance have been demonstrated • the level of dis
