Don’t accept tax penalties

The Taxman is all too keen to charge a penalty if his enquiries lead to more tax being payable. However, if it is a technical error only or a genuine innocent mistake you should fight the penalty determination.

Penalties can only be charged by the Taxman where he can prove fraud or negligence on the part of the taxpayer. The burden of proof is on him.

Although it goes against the grain to say this, another defence against penalties is where the error was down to your accountant rather than you. This is because you as the taxpayer did not make the error.

So, don’t necessarily roll over and die!