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Introduction

HMRC has the legal power to charge a civil penalty where there are errors in or omissions from tax returns. The penalty regime in operation prior to 1 April 2009 (known as ‘old penalties’) differs from the current regime (known as ‘new penalties’). The two regimes run alongside each other and will continue to do so for a number of years, as the basis for applying penalties depends on the original filing date and period of the tax returns concerned.

For more on the new penalties in FA 2007, Sch 24, see the Penalties for inaccuracies in returns ― overview guidance note.

What periods are covered by the old regime?

The old penalties regime applies to tax returns with a filing date up to and including 31 March 2009.

For income tax, capital gains tax and Class 4 national insurance contributions, old penalties apply to tax returns up to and including the 2007/08 return.

For corporation tax and VAT, old penalties apply to returns filed on or before