What are the most common situations where people fail to notify HMRC?
The most frequent circumstances when the failure to notify penalty may apply is where you don’t tell us at the right time that: • you are liable to pay tax because your new business has made a profit • your business is required to register for VAT • you have sold an asset and need to declare it for capital gains tax • you start a type of business that you are required to register with us – for example where you are liable to pay Excise duties • your circumstances change in another way that affected your tax position Please check your tax position with us or a competent adviser. For Direct Taxes such as Income Tax and Capital Gains Tax, the requirement is to notify any tax liability, which arises from a new taxable activity. For example, there is no need to notify a new business provided you notify the tax liability arising from income from this business on a tax return you are already required to complete. If however, you do not complete tax returns because you have no tax liability an
