In A Moran v HMRC (TC01420 – 12 October) HMRC discovered that a publican had failed to account for PAYE on payments to various bar staff. They issued determinations under Income Tax (PAYE) Regulations 2003 SI 2003/2682 reg 80 and imposed penalties under TMA 1970 s 98(4) at the rate of 45% of the evaded tax. The First-tier Tribunal upheld the determinations and the penalties. Judge Aleksander held that the penalty abatement of 55% was ‘generous’.
Why it matters: HMRC’s guidelines on the extent to which penalties should be abated to take account of factors including the size and gravity of the offence and the extent of disclosure and co-operation have been widely publicised. On the facts here Judge Aleksander held that HMRC had been generous in abating the penalty by 55%.
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