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New rules for tax returns

Autumn 2009

There are penalties if you do not make full and accurate tax returns. The government has taken steps to formalise the basis on which penalties are applied.

In broad terms, the new rules for returns filed on or after 1 April 2009 provide for a moderate penalty of up to 30% for failure to take reasonable care, higher penalties of up to 70% for deliberate understatement and still higher penalties of up to 100% for deliberate understatement with concealment. Taxpayers found to have made a genuine mistake will not be penalised.