For periods beginning on or after 1 April 2008 where a Return is due on or after 1 April 2009

Error or Inaccuracy Penalty as % of underpayment Reduction of Penalties
Unprompted Prompted
Mistake despite taking reasonable care Nil - -
Taxpayer aware of mistake but did not take reasonable steps to notify HMRC. 30% 0% - 30% 0% - 15%
Tax under-assessed by HMRC and no reasonable steps taken to correct 30% 0% - 30% 0% - 15%
Carelessness 30% 0% - 30% 0% - 15%
Deliberate inaccuracy but not concealed 70% 0 % - 50% 0% - 35%
Deliberate inaccuracy that was concealed 100% 0 % - 70% 0% - 50%

For more information please visit http://www.hmrc.gov.uk/about/new-penalties/ or >download HM Revenue factsheet.

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