What is HMRC?
The HMRC is also known to be named as the ‘Her Majesty’s Revenue and Customs.’ It is basically the tax collection department of the UK. They generally focus on the tax returns and their maintenance.
They make sure that all the taxes are very much collected and returned within their stipulated time. People who do not do that have to face their equal share of wrath from the department.
What Are The Penalties That One May Have To Face?
There are various penalties that one may have to face for the skipping of the tax. The penalties basically are segregated according to the amount of crime. There at times have been cases that the person had a sudden downfall or has somehow forgotten to pay the tax, and that should be considered as the unintentional one, and the HMRC will still charge a penalty of anywhere near £1300 to the higher amounts.
But in cases where there has been an intentional delay accompanied with fake documents and lies during the investigation, the penalties have increased to the limitation of being put in the jail and named and shamed for the same. The penalties also depend on the various time limits. For example 3 months from the due date and then the 6 months from the due date, etc.
How Has The Penalty Changed Over These Many Years?
The system of the penalty has actually changed over the years and so has the rates. Where people are now getting charged a minimum of £1300 as a penalty, there was a time they used to get charged only an addition of £200 maybe.
And then they would continue doing the same without any remorse. The change in charging the penalties have increased over the years, and it will remain that way according to the HMRC.
So Why Does HMRC Believe In Penalty?
It is a basic human nature that people at times hardly understands stuff until handles with punishment. That is exactly what they used to do being kids. Our parents used to handle us the same very way.
They used to use strict actions for things that we shouldn’t be doing. HMRC has taken up the same concept. According to them, the people who pay tax are not kids anymore, which in fact is true, and they should, therefore, be much more responsible. Thus punishing them is the only way.
Why Doesn’t HMRC Believe In Showing Mercy?
They believe that even if a person is in trouble, some amount should be deducted from them as a penalty so that the people do not get influenced by them. Many may start faking stories and reports for the mercy.
Showing mercy with one intentional skipper can be thus more dangerous. People generally learns and gets influenced from the very same. Thus, if they learn mercy on any one of the culprits then definitely the others will start the same.
The HMRC has definitely made their point but doing all that is necessary. People needs to change and start with paying the taxes, as they are really helpful to the crowd.