HMRC has updated its senior accounting officer (SAO) guidance in response to the Castlelaw case. A key element of the new guidance is the reflected policy move from a strict liability approach for penalties to a more pragmatic approach; this is expected to drive a shift away from administrative penalties to ‘penalties of substance’ (i.e. ‘main duty’ penalties). There have been some other updates to ease elements of SAO administration, with relaxations over how the certificate/notification can be submitted, and to clarify HMRC powers. Whilst the move away from a strict liability approach is welcomed, there is a real possibility that the number of penalties issued for SAO main duty failures is set to rise.
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HMRC has updated its senior accounting officer (SAO) guidance in response to the Castlelaw case. A key element of the new guidance is the reflected policy move from a strict liability approach for penalties to a more pragmatic approach; this is expected to drive a shift away from administrative penalties to ‘penalties of substance’ (i.e. ‘main duty’ penalties). There have been some other updates to ease elements of SAO administration, with relaxations over how the certificate/notification can be submitted, and to clarify HMRC powers. Whilst the move away from a strict liability approach is welcomed, there is a real possibility that the number of penalties issued for SAO main duty failures is set to rise.
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