Starting a new business? Get 40% off our accountancy services for 3 months! 😀

x

HM Revenue & Customs has issued a warning that all businesses could face a penalty as a result of failing to notify them of certain changes in their circumstances affecting their tax position. Failing to make HMRC aware of any changes to liability could result in a penalty which is up to 100 percent of the tax owed.

If a change occurs on or after 1st April 2010, a new form of penalty payment will apply. The penalty charged will depend upon the behaviour that caused the failure to notify. If the failure was a deliberate act, then HMRC will charge higher penalties. The penalties will apply when a company or person doesn’t inform HMRC of a liability to another type of tax, such as reaching the limits for paying Value Added Tax. If a person starts a new business or becomes a sole trader, they must inform HMRC of their intentions within the first three months of trading, as failure to do so will incur a penalty.

HMRC will reduce the penalty if there was a legitimate excuse for the failure to notify, as long as HMRC were informed as soon as they realised. Penalties are charged for missing any deadlines which are relevant to your business. Reputable small business accountants will explain which circumstances are relevant to the failure to notify penalties.

An online accountancy will have all information provided in real time, which will allow for them to inform HMRC on your behalf, avoiding penalties.

About The Author

Gary Fields

Content Writer working alongside our expert accountants to bring you the latest Tax and Accounting news.

More posts by this author
guest
0 Comments
Inline Feedbacks
View all comments

Read more posts...

Architects and Tax

Architecture is a highly diverse sector when it comes to tax. It’s partly down to the type of businesses that carry out…

Read More

June 2022 Client of the Month: Manea Kella

This month we spoke to Adrian Manea, architect and director at Manea Kella, a London based RIBA Chartered architecture and interior design…

Read More

Succession Planning for Business Owners: What Comes Next?

When you own a business, it’s extremely normal to feel like you’re surviving one day to the next – ‘winging it’, as…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?

Yes
No

Call us on 020 3355 4047 if you’re not sure.