Advice on Small Business Tax Penalties

Don’t be Mugged by the Taxman

Don runs a small company, in fact at the moment he is the only employee. Although he makes ‘every effort’ to comply with the requirements of the Taxman he recently made a small but devastating mistake.

It was early one January morning when Don, feeling at one with the world, arrived at work and started opening the morning post. A buff envelope from HM Revenue and Taxes took his eye and so he opened it first.

Inside was a letter headed ‘Notice of Penalty Determination’ in bold letters.

Don was surprised to say the least, what penalty, when, how. This initial shock soon changed to terror and a sick feeling deep in his stomach as he read:

‘statutory penalties that you must pay are £ 800.00’.

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