What taxes are subject to the inaccuracy penalty regime and when will it start?
The inaccuracy penalty regime is initially for inaccuracies in returns and documents for: • Capital Gains Tax • Construction Industry Scheme • Corporation Tax • Income Tax • National Insurance contributions (but not Class 1A NIC) • PAYE • VAT It applies to returns or other documents for return periods starting on or after 1 April 2008 that are due to be filed on or after 1 April 2009. The legislation is Schedule 24 of Finance Act 2007. Schedule 40 of Finance Act 2008 extended the new penalties for inaccuracies to almost all the other taxes, duties and levies we administer. Return periods commencing on or after 1 April 2009 where the return is due to be filed on or after 1 April 2010, are affected by this second phase of penalty reform.
