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The penalty for inaccuracy in a document under the harmonised regime takes account of the underlying behaviour which gave rise to the inaccuracy. The legislation distinguishes between different behaviours, which are divided into categories reflecting the seriousness with which each is viewed (and thus the level of penalty). These categories are important because they determine both the existence of an offence and the level of penalty. The inaccuracy does not have to be deliberate for it to attract a penalty. However, deliberate behaviour (discussed at A4.567A) results in a higher penalty than mere carelessness.

Furthermore, there is scope for a penalty for careless inaccuracy to be suspended. See A4.567E.

A taxpayer is normally liable for a failure by the 'agent'. However, where they can satisfy HMRC that they have taken all reasonable steps to avoid the failure, no penalty will be due, despite a careless action by someone on their behalf. See the further commentary on this below.