Inaccuracies in certain documents, e.g. VAT returns, which were caused by ‘careless action’ may attract a penalty up to 30 per cent of the potential lost revenue (FA 2007, Sch. 24, para. 4(1)).
An inaccuracy is ‘careless’ if it happened due to a failure, by the person giving HMRC the inaccurate document, to take ‘reasonable care’ (FA 2007, Sch. 24, para. 3(1)(a); Compliance Handbook at CH 81120).
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