{"id":513,"date":"2025-06-27T12:13:30","date_gmt":"2025-06-27T12:13:30","guid":{"rendered":"https:\/\/www.taxpartnersuk.com\/blog\/?p=513"},"modified":"2025-06-27T12:14:43","modified_gmt":"2025-06-27T12:14:43","slug":"failure-to-notify-hmrc-of-chargeability","status":"publish","type":"post","link":"https:\/\/www.taxpartnersuk.com\/blog\/failure-to-notify-hmrc-of-chargeability\/","title":{"rendered":"Failure to notify HMRC of chargeability"},"content":{"rendered":"

Income tax<\/strong><\/p>\n

If a person, who has not received a notice to deliver a tax return from HMRC under s.8 of the Taxes Management Act 1970 (TMA) but is otherwise chargeable to income tax, has an obligation under s.7(1) of TMA to notify HMRC that s\/he is chargeable to income tax. The taxpayer has six months after the end of the tax year to notify HMRC i.e. before 05 October following the tax year.<\/p>\n

There could be a variety of reasons why a person may be chargeable to income tax. A tax-payer:
\n\u00b7 Becomes self-employed
\n\u00b7 Has income from land and property in the UK
\n\u00b7 Has taxable foreign income
\n\u00b7 Has annual income (even if employed) of \u00a3100,000 or more
\n\u00b7 Has untaxed income which cannot be collected through your PAYE code.<\/p>\n

S. 7(3) to (7) of TMA excepts a taxpayer from this obligation if s\/he has no net liability to income tax for the year, or has had all the tax deducted at source to meet the net income tax liability for the year.<\/p>\n

Capital Gains Tax <\/strong> <\/p>\n

The obligation to notify HMRC of chargeability to capital gains tax under the Taxation of Chargeable Gains Act 1992 (TCGA) is created by the same legislation as for income tax. If a person sells shares, property or other assets (‘chargeable event’) and as a result has chargeable gains during the tax year in excess of the annual exempt amount, s\/he should notify HMRC within six months after the end of the tax year i.e. before 05 October following the tax year.<\/p>\n

Corporation Tax<\/strong><\/p>\n

Similarly, para 2of Schedule 18 to the Finance Act 1998 creates an obligation on every company that is chargeable to tax for an accounting period to notify HMRC of its coming to chargeability to tax. Where the company has not received a notice to deliver a tax return from HMRC, it should notify within 12 months from the end of the accounting period.<\/p>\n

Value Added Tax<\/strong><\/p>\n

Paragraphs 5,6 & 7 of Schedule 1 to Value Added Tax Act 1994 (VATA) creates an obligation on the part of the taxpayer to notify HMRC within 30 days of the end of the relevant month in which the VAT registration threshold has been breached or within 30 days after a vat-registered business has been transferred to non-vat registered business. Similar provisions exist within VATA with regard to distance sales, acquisitions etc. where it is obligatory on the part of the taxpayer to notify HMRC.<\/p>\n

Failure to notify<\/strong><\/p>\n

Schedule 41 to the Finance Act 2008 has laid down tax-geared penalties for failure to notify HMRC of chargeability to tax as explained above.<\/p>\n\n\n\n\n\n\n\n\n
Reason <\/th>\n Disclosure<\/th>\n Minimum Penalty<\/th>\n Maximum Penalty<\/th>\n<\/tr>\n<\/thead>\n
Where there is a Reasonable Excuse<\/td>\n<\/td>\nNo penalty<\/td>\nNo penalty<\/td>\n<\/tr>\n
Not deliberate<\/td>\nUnprompted
Prompted<\/td>\n		 0% within 12 months of tax being due otherwise 10%
10% within 12 months of tax 30% being due, otherwise 20% <\/td>\n		30%<\/td>\n<\/tr>\n
Deliberate<\/td>\nUnprompted
Prompted<\/td>\n		20%
35%<\/td>\n		70%
70%<\/td>\n<\/tr>\n
Deliberate and Concealed <\/td>\nUnprompted
Prompted<\/td>\n		30%
50%<\/td>\n		100%
100%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Now what constitutes a \u2018reasonable excuse\u2019 is explained separately.<\/p>\n","protected":false},"excerpt":{"rendered":"

Income tax If a person, who has not received a notice to deliver a tax return from HMRC under s.8 of the Taxes Management Act 1970 (TMA) but is otherwise chargeable to income tax, has an obligation under s.7(1) of TMA to notify HMRC that s\/he is chargeable to income tax. The taxpayer has six […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[56],"tags":[],"class_list":["post-513","post","type-post","status-publish","format-standard","hentry","category-news"],"yoast_head":"\nFailure to notify HMRC of chargeability - Beyond Compliance: Technical & Advisory Insights<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.taxpartnersuk.com\/blog\/failure-to-notify-hmrc-of-chargeability\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Failure to notify HMRC of chargeability - Beyond Compliance: Technical & Advisory Insights\" \/>\n<meta property=\"og:description\" content=\"Income tax If a person, who has not received a notice to deliver a tax return from HMRC under s.8 of the Taxes Management Act 1970 (TMA) but is otherwise chargeable to income tax, has an obligation under s.7(1) of TMA to notify HMRC that s\/he is chargeable to income tax. The taxpayer has six […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.taxpartnersuk.com\/blog\/failure-to-notify-hmrc-of-chargeability\/\" \/>\n<meta property=\"og:site_name\" content=\"Beyond Compliance: Technical & Advisory Insights\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-27T12:13:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-27T12:14:43+00:00\" \/>\n<meta name=\"author\" content=\"Tax Partners\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tax Partners\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/failure-to-notify-hmrc-of-chargeability\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/failure-to-notify-hmrc-of-chargeability\\\/\"},\"author\":{\"name\":\"Tax Partners\",\"@id\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/#\\\/schema\\\/person\\\/043147c19cce5f3fec33d07d1a086eec\"},\"headline\":\"Failure to notify HMRC of chargeability\",\"datePublished\":\"2025-06-27T12:13:30+00:00\",\"dateModified\":\"2025-06-27T12:14:43+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/failure-to-notify-hmrc-of-chargeability\\\/\"},\"wordCount\":478,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/#organization\"},\"articleSection\":[\"News\"],\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/failure-to-notify-hmrc-of-chargeability\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/failure-to-notify-hmrc-of-chargeability\\\/\",\"url\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/failure-to-notify-hmrc-of-chargeability\\\/\",\"name\":\"Failure to notify HMRC of chargeability - Beyond Compliance: Technical & Advisory Insights\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/#website\"},\"datePublished\":\"2025-06-27T12:13:30+00:00\",\"dateModified\":\"2025-06-27T12:14:43+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/failure-to-notify-hmrc-of-chargeability\\\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/failure-to-notify-hmrc-of-chargeability\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/failure-to-notify-hmrc-of-chargeability\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Failure to notify HMRC of chargeability\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/\",\"name\":\"Beyond Compliance: Technical & Advisory Insights\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/#organization\",\"name\":\"Tax Partners, Chartered Accountants & Tax Advisors\",\"url\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/08\\\/textlogo.png\",\"contentUrl\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/08\\\/textlogo.png\",\"width\":263,\"height\":60,\"caption\":\"Tax Partners, Chartered Accountants & Tax Advisors\"},\"image\":{\"@id\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/#\\\/schema\\\/person\\\/043147c19cce5f3fec33d07d1a086eec\",\"name\":\"Tax Partners\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/73c36e76424e46979814dd4803d3cc5717d414557a2df75458ad3b4db35a54c9?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/73c36e76424e46979814dd4803d3cc5717d414557a2df75458ad3b4db35a54c9?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/73c36e76424e46979814dd4803d3cc5717d414557a2df75458ad3b4db35a54c9?s=96&d=mm&r=g\",\"caption\":\"Tax Partners\"},\"sameAs\":[\"https:\\\/\\\/testingurls.net\\\/Tax_partner\"],\"url\":\"https:\\\/\\\/www.taxpartnersuk.com\\\/blog\\\/author\\\/tax_partner\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Failure to notify HMRC of chargeability - Beyond Compliance: Technical & Advisory Insights","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.taxpartnersuk.com\/blog\/failure-to-notify-hmrc-of-chargeability\/","og_locale":"en_GB","og_type":"article","og_title":"Failure to notify HMRC of chargeability - Beyond Compliance: Technical & Advisory Insights","og_description":"Income tax If a person, who has not received a notice to deliver a tax return from HMRC under s.8 of the Taxes Management Act 1970 (TMA) but is otherwise chargeable to income tax, has an obligation under s.7(1) of TMA to notify HMRC that s\/he is chargeable to income tax. The taxpayer has six […]","og_url":"https:\/\/www.taxpartnersuk.com\/blog\/failure-to-notify-hmrc-of-chargeability\/","og_site_name":"Beyond Compliance: Technical & Advisory Insights","article_published_time":"2025-06-27T12:13:30+00:00","article_modified_time":"2025-06-27T12:14:43+00:00","author":"Tax Partners","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Tax Partners","Estimated reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.taxpartnersuk.com\/blog\/failure-to-notify-hmrc-of-chargeability\/#article","isPartOf":{"@id":"https:\/\/www.taxpartnersuk.com\/blog\/failure-to-notify-hmrc-of-chargeability\/"},"author":{"name":"Tax Partners","@id":"https:\/\/www.taxpartnersuk.com\/blog\/#\/schema\/person\/043147c19cce5f3fec33d07d1a086eec"},"headline":"Failure to notify HMRC of chargeability","datePublished":"2025-06-27T12:13:30+00:00","dateModified":"2025-06-27T12:14:43+00:00","mainEntityOfPage":{"@id":"https:\/\/www.taxpartnersuk.com\/blog\/failure-to-notify-hmrc-of-chargeability\/"},"wordCount":478,"commentCount":0,"publisher":{"@id":"https:\/\/www.taxpartnersuk.com\/blog\/#organization"},"articleSection":["News"],"inLanguage":"en-GB","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.taxpartnersuk.com\/blog\/failure-to-notify-hmrc-of-chargeability\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.taxpartnersuk.com\/blog\/failure-to-notify-hmrc-of-chargeability\/","url":"https:\/\/www.taxpartnersuk.com\/blog\/failure-to-notify-hmrc-of-chargeability\/","name":"Failure to notify HMRC of chargeability - Beyond Compliance: Technical & Advisory Insights","isPartOf":{"@id":"https:\/\/www.taxpartnersuk.com\/blog\/#website"},"datePublished":"2025-06-27T12:13:30+00:00","dateModified":"2025-06-27T12:14:43+00:00","breadcrumb":{"@id":"https:\/\/www.taxpartnersuk.com\/blog\/failure-to-notify-hmrc-of-chargeability\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.taxpartnersuk.com\/blog\/failure-to-notify-hmrc-of-chargeability\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.taxpartnersuk.com\/blog\/failure-to-notify-hmrc-of-chargeability\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.taxpartnersuk.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Failure to notify HMRC of chargeability"}]},{"@type":"WebSite","@id":"https:\/\/www.taxpartnersuk.com\/blog\/#website","url":"https:\/\/www.taxpartnersuk.com\/blog\/","name":"Beyond Compliance: Technical & Advisory Insights","description":"","publisher":{"@id":"https:\/\/www.taxpartnersuk.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.taxpartnersuk.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"https:\/\/www.taxpartnersuk.com\/blog\/#organization","name":"Tax Partners, Chartered Accountants & Tax Advisors","url":"https:\/\/www.taxpartnersuk.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.taxpartnersuk.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.taxpartnersuk.com\/blog\/wp-content\/uploads\/2023\/08\/textlogo.png","contentUrl":"https:\/\/www.taxpartnersuk.com\/blog\/wp-content\/uploads\/2023\/08\/textlogo.png","width":263,"height":60,"caption":"Tax Partners, Chartered Accountants & Tax Advisors"},"image":{"@id":"https:\/\/www.taxpartnersuk.com\/blog\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/www.taxpartnersuk.com\/blog\/#\/schema\/person\/043147c19cce5f3fec33d07d1a086eec","name":"Tax Partners","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/secure.gravatar.com\/avatar\/73c36e76424e46979814dd4803d3cc5717d414557a2df75458ad3b4db35a54c9?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/73c36e76424e46979814dd4803d3cc5717d414557a2df75458ad3b4db35a54c9?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/73c36e76424e46979814dd4803d3cc5717d414557a2df75458ad3b4db35a54c9?s=96&d=mm&r=g","caption":"Tax Partners"},"sameAs":["https:\/\/testingurls.net\/Tax_partner"],"url":"https:\/\/www.taxpartnersuk.com\/blog\/author\/tax_partner\/"}]}},"_links":{"self":[{"href":"https:\/\/www.taxpartnersuk.com\/blog\/wp-json\/wp\/v2\/posts\/513","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxpartnersuk.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxpartnersuk.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxpartnersuk.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxpartnersuk.com\/blog\/wp-json\/wp\/v2\/comments?post=513"}],"version-history":[{"count":1,"href":"https:\/\/www.taxpartnersuk.com\/blog\/wp-json\/wp\/v2\/posts\/513\/revisions"}],"predecessor-version":[{"id":514,"href":"https:\/\/www.taxpartnersuk.com\/blog\/wp-json\/wp\/v2\/posts\/513\/revisions\/514"}],"wp:attachment":[{"href":"https:\/\/www.taxpartnersuk.com\/blog\/wp-json\/wp\/v2\/media?parent=513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxpartnersuk.com\/blog\/wp-json\/wp\/v2\/categories?post=513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxpartnersuk.com\/blog\/wp-json\/wp\/v2\/tags?post=513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}