New fines for new companies

Start-up companies face a new fine if they fail to tell the taxman when they start to trade.

Martin Johnson, tax partner at our Sunderland office said:

“For the first time companies must give notification when they start trading under this year’s Finance Act. Failure to do so will mean a hefty penalty. It is an increased burden of redtape for businesses and they should double check their reporting procedures before they get caught out,” he warned.

Under the new rules companies of all sizes must inform the Inland Revenue within three months of becoming liable to corporation tax or they face a penalty of upto £300 and an additional fine of £60 a day if the failure continues.

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