Shouldn’t HMRC be supporting businesses in the recession rather than penalising them?
While it is vital that HMRC help businesses through the recession, it remains necessary to have the power to charge financial penalties for those who do not: • send accurate documents or returns and as a result fail to pay the correct amount of tax at the right time • notify a new taxable activity or new liability to tax HMRC also need to be able to charge penalties for VAT and Excise wrongdoings. Penalties ensure fairness for the vast majority who take care to ensure their tax affairs are in order. Penalties are not new. Both the Inland Revenue and Customs and Excise used them. What is new is a single consistent system of penalties that will apply to almost all of the taxes HMRC administer. To help businesses facing temporary financial difficulties HMRC has launched a new dedicated Business Payment Support Service. As part of this service, businesses will be able to spread their payments over a longer period in a way they can afford. Provided the taxpayer contacts HMRC before the paym
