Revenue & Customs penalties warning for small firms
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SMALL hauliers that fail to make HM Revenue & Customs (HMRC) aware of any tax liabilities could face a penalty of up to 100% of the tax they owe. HMRC warns ahead of the end of the current tax year.
As part of the Finance Act 2008. the "failure to notify penalty" affects any business that fails to tell HMRC if it has sold an asset and made a profit; is renting out a property and receiving extra income; or that turnover is about to exceed £70,000.
Depending on how deliberate the concealment, 1-1MRC says it will impose fines of up to 100% of the amount of tax owed.
An HMRC spokeswoman says: "One aim of the failure to notify penalty is to encourage businesses and individuals to become part of the legitimate economy. The informal economy undermines the competitiveness of honest businesses and individuals: it can harm consumers and erodes tax receipts -It applies to almost all the taxes, duties and levies that HMRC administers"