Penalties for failure to notify

Produced by Tolley in association with

Owner-Managed Businesses

Guidance

Introduction

The onus is on the taxpayer to inform HMRC of the chargeability to tax. Each of the taxes has different legislative provisions, but the common theme is that a taxpayer must notify HMRC when certain criteria are met, including (but not limited to):

•
becoming liable to income tax, corporation tax or capital gains tax (for example a new source of income such property income)
•
beginning a new activity or changing an existing activity which will lead to a tax/VAT liability (for example setting up a new trade or where there is material change in the nature of supplies made by a person previously exempted from VAT registering), or
•
reaching certain thresholds (for example, the statutory limits for VAT registration)

As each tax has separate requirements, these are discussed below. It also follows that a taxpayer may have separate notification requirements for different taxes. For example, a taxpayer may have to notify HMRC of a liability to corporation tax and VAT separately, on different dates, or risk attracting a penalty

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Philip Rutherford

Senior Tax Director at Molson Coors Brewing Company

Phil is the Senior Tax Director for Molson Coors' European operations. He has responsibility for both direct and indirect taxes across both EU and non-EU states. Prior to this, Phil was responsible for Molson Coors UK tax affairs covering all major taxes and duties. Phil trained at KPMG LLP, where he worked for 8 years, specialising in tax investigations across both direct and indirect tax.

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