How will HMRC calculate the failure to notify penalty?
No penalty is due unless there is tax or duty unpaid because of the failure. The only exception will be for some Excise Duty registrations where the business is required to obtain approval before they can commence trading. If HMRC is told about the taxable activity or liability, it will allow a reduction for disclosure, with larger reductions if the disclosure is unprompted. This includes reducing a penalty for a non-deliberate failure to nil when HMRC: • told about the failure within 12 months • then given full and complete assistance to help quantify the tax due If there has been a failure to notify and tax has been unpaid for more than 12 months, then the minimum penalty is 10 per cent. This will increase where the failure was: • deliberate, but without concealment – minimum penalty of 20 per cent • deliberate with concealment – minimum penalty of 30 per cent The more a person tells HMRC and helps to establish the amount of tax due, including allowing access to their records, the mo
